Don't trust a compression gauge.
You need to run it a bunch. Do a hang test. It will get better. Don't tune it fat if you want it to break-in this decade.
If you touched the exhaust roof you lowered compression. 0.005 is three pounds or more. Good rings are priceless. Use Caber or any large OEM manufacturer is good.
Normally wetsanding with 400 is a better process with a 35° angle. It just takes more time. Dingleball hones are the worst thing to use. They follow the bore as it is. Stones, once broke-in, follow the bore overall not the craters. Knocking off the high spots is a far better process to getting a straight bore for new wears to ride on.