That’s pretty common Richard. I’ve seen it a lot. The cylinder on the bottom often has scuffs in the lower quadrant too. Usually the cylinders can be honed out and stay in spec. But I’d replace the piston/s if its to be a daily runner.
So here is a question directly related to this issue.
The original oil used in the 50’s led to much carbon buildup. But today’s are far superior by all accounts.
Is it possible that running this engine on the best oil, has resulted in an actual cleaning of the combustion chamber? I run the same oil at the same mix ratio in my 1914 Evinrude, and I gotta tell ya…it rolls over soooooooooo much easier since the change.