From the looks of your picture it looks like someone remove the primer ball and put in an in-line fuel filter? As said, you need the squeeze ball with its check valve to keep from loosing your prime. The ball goes where that in-line filter is.
Also, at your lift pump, if you remove the screw in the middle of the plastic cap there is a screen in there that gets clogged up sometimes-easy to check.
That is most definitley a Deutz engine.
I still thing you need to check compression, and now reading, especially seeing how much ether has been used.