I may be absolutely wrong but this sounds to me like an engine run at low RPM (below optimum) for an extended time (over a 400 hr period).
I put it to you - low hrs, increased oil consumption, evidence of possible failure of piston ring/cylinder wall bedding in (low compression) - all suggest incorrect engine management.
A Rotax 9 run within the recommended rpm 5200-5500 (over 400 hrs) would be unlikely to show these sort of symptoms.
Cheapest way out is to work the engine hard (5500rpm) over an extended period (s) - if it doesn't work what has the owner lost?