Please post the model and serial numbers, located one the frame. Should start with 169 or 269. That way we will know exactly which engine you are talking about and how it is mounted. On some models there is a baffle which must be removed.
I removed hood and there are 2 studs on the engine head that engage the muffler bracket. I removed the nuts that hold the bracket onto the studs but I cannot pull the bracket off the studs. This is what prevents muffler removal
That model number does not come up, could it be 1691276. According to this model number you will have an exhaust manifold bolted to the engine. The manifold is attached to the muffler with a clamp and the muffler is bolted to the frame. You must unbolt the muffler from the frame and loosen the clamp to get the muffler and manifold off. I’m only guessing, because I’m looking at a different model than you posted. Look at this parts manual to see what I’m talking about. If this doesn’t work, please post a couple of pictures so we can see what you have. http://www.thepowerportal.com/ipls/ipl.htm?md=1691276_IPLURL_LO.pdf&attachment=1