Kohler Engine Problem

[Swagen]

I have a CV490-27532 that I just did a head gasket on. When reassembling, I can't get the exhaust valve closed. The hydraulic lifter is not allowing it. I let it sit over night to see if it would bleed off but no luck. The service manual says these are unserviceable. I've never dealt with one of these. I'd like to take a look at it. Can I just pull it out of the hole from the top? Maybe it's dirty?
Thanks

 

[JTK]

I wonder if it has something to do with the automatic compression release, until the crankshaft starts spinning.

 

[Swagen]

Possibly, but I can see that process as well. I turned by hand with the rocker bolt backed out a little, didn't want to overextend the valve and possibly make contact with the piston. I can see both processes actuate. I can see the exhaust valve open during the proper time and can see the compression release bump during the compression stroke. It's just that everything is happening a little deeper as the valve never fully relaxes.

I'm kind of afraid to run it like this because I don't want to bend a rod or slam the exhaust valve into the top of the piston.