The pston shows signs of oil useage note how it is washed clean on the top side especially the left side.
The cylinder appear to be scored especially at the bottom which indicates not enough oil changes or possible overheating.
Does the cylinder have ridge when the top ring stops? Enough to catch your finger nail on?
If you look very carefully and use a good light you can see the top ring gap between the piston and cylinder, may not be able to measure it but can get a good guess it it.
When the oil is not changed and dirt is allowed to build up in the oil the oil rings will wear and not be able to keep the oil from bypassing the piston. While the compression rings don't wear as fast and keep good compression in the engine. If dirt enters the engine thru the air intake the compression rings wear and lower compression but if oil was changed enough the oil ring will still control the oil.
Not knowing what the engine is mounted on or even the make of the engine (Briggs?) cannot determine if repair or replacement would be the best choice.