Chainsaw Repair

Those screws look similar to those used on stihl 021-039 and ms 210-390 engine pan to cylinder screws. Did you just remove material from the cylinder base to lower the squish? How do the seals and bearings meet the engine pan and cylinder. Would think there maybe a gap as the bearings are the same size and you made the circumference smaller between the pan and cylinder by lowering the cylinder. But I maybe wrong.

I lowered the bearing seal seat first by .016" and then sanded the base of the cylinder by the same amount.   So no gap.
There is a sealant that has to be used between the two halves of the crankcase also.