Bigger Briggs engines rarely break flywheel keys. That more of an issue with small engines direct coupled to a blade.
I'd suspect first - early igntion timing - maybe due to a bad Magnetron module - and/or - weak spark.
Break the electrode off an old spark plug, hook it to a plug wire, and see if a blue spark jumps the new enlarged gap. If it does not - it's in sufficient.
Stuck valves can give similar symptoms - but they usually show when an engine has run a while and gets real hot - then the exhausts can hang up. If the valves were rusted from sitting - it would not kick back like you describe.
In regard to valve-tappet clearance - just make sure you have at least enough to close and make sure you don't get a false reading due to the compression release built into the camshaft. Most aluminum engines are .007" intake and .011 exhaust. Most cast-iron engines are .009" intake and .014" - .017" exhaust.
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