How many miles are on the engine/head? Has the head been rebuilt or the valves adjusted in the past or recently? Any overheating or hard running events of note lately?
If the leak down kit will build any pressure, even a few psi, then it may be hard to see the issue with a bore scope. Larger damage can be visible but the hole will also prevent any build-up of air pressure. The outcome in either case is typically similar and results in needing to pull the head for repairs.
One possible failure scenario is that the intake valve(s) on that cylinder were running too tight and were held open too much, allowing the valves to overheat and burn/erode until they stopped sealing well. Valves have to close securely and for sufficient duration to transfer some heat to the seats and avoid the valves overheating.
Another possible explanation for what's going on is that debris, like a chunk of carbon, is stuck between an intake valve and seat causing it to seal poorly or debris ran through the valve(s) and damaged the sealing surface(s) and/or bending the valve stem so that the valve doesn't sit flush in the seat.
In a situation where you couldn't, or didn't want to, remove the head for a full valve job/etc. you might next check the adjustment on the intake valves for this cylinder to possibly learn some relevant details. For instance, if one of the intake valves is loose then it may be being held open by debris/damage, causing both the lost compression and the larger gap. Conversely if one of the intake valves is too tight then there may be relevant valve face or seat erosion keeping it from closing fully and throwing the adjustment off. Trying to clean the valve/seat in the first case or re-adjusting in the second case could possibly buy you some time and return some compression but that's a long shot and more of a bush repair.
Depending on the engine history, condition otherwise and your goals for it I'd be seriously considering pulling the head for a thorough inspection and then replacement or full repair. Unless you find a clear explanation for what's going on that is reliably repairable it's now time for a full valve job at least.