I built myself a pinion gear puller that worked good. As you can see on the last picture the piston rings are totally baked into the piston.

The inside of the engine looks not very good at all. Spark advance is broken and the primary gear is totally worn out. I am pretty sure more bad surprises will come, going deeper into the engine. I also noticed that the left engine cover has a 1971 production time stamp and the right side a 1968. I am pretty sure someone had the engine disassembled before me.