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If it is a head gasket, the good news is it's a cheap fix on those B&S 31000-series engines. My brothers LA105 did the same thing and we fixed it for around $30. You don't even have to remove the engine. He got the required gaskets on Amazon.
Below is what his head gasket looked like. The arrow shows where the leak was. It was only a tiny spot but that's all it takes.
Below is what his head gasket looked like. The arrow shows where the leak was. It was only a tiny spot but that's all it takes.