That's interesting. I think we might need a photo.
Most Francis Barnetts used the 172cc Super Sport engine, which has prefix BZ. The hot Brooklands version has prefix Y.
KZ is the prefix for for a 196cc Brooklands engine, but I'm not familiar with KZB... Maybe it's some variant on the Brooklands/Super Sports.
The drilling in the cylinder between the exhaust ports is for an oil feed. The Brooklands head has a boss for a decompressor, but it is usually not fitted. Perhaps super-sporty riders/racers made do without a decompressor. If it's a huge problem, maybe you could use a thin aluminium gasket under the cylinder (not too thick or it will change the port timing) or a thicker head gasket to lower the compression a little.
Leon