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The exhaust leak was not your issue. (they ALL leaked back then)
timing or air leak would do it. I melted a piston on the DT175E when the ignition was set to factory marks. After finding another piston I dug up the year priors instruction for manually setting the timing and found the factory marks where Way off. (the timing was advanced by 10 deg's) It was happy till I sold it this spring.
Sometimes you just have to split a case before you run these old 2 smokes. otherwise you blow them up. I would swap the seals. it is a 2-3 hour job at worst. Pistons cost $$ (when you can find them for the older bikes.) time is available.
Glad you and the Lad are having fun.
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