If the lifter collapses, which is common-ish on the AFM engines, it will act like a dead cylinder. Probably why you aren't getting compression on that cylinder.
To fix, a lot of the engine needs to be disassembled. Intake has to come off, lifter valley. Rocker arms and pushrods gotta come off to pull the lifters. Cam will probably have to come out. Heads may have to come off, but not 100% on that.
Since the chances of this thing still being under any kind of warranty are slim-to-none, I'd look at ditching the AFM altogether. There are AFM delete kits with new cam, lifters, lifter trays, etc.
This one from summit racing doesn't have the cam, but has "everything" else. I'm sure there's going to be some nickel and dime stuff that will need to be done, because "while you are in there" will pop up.
Free Shipping - Summit Racing™ Active Fuel Management Delete Combos with qualifying orders of $99. Shop Cylinder Deactivation Delete Combos at Summit Racing.
www.summitracing.com
Also check with Texas Speed & Perf. They can put together a kit for you.
DODdeleteKit DOD / AFM Delete Kit for 5.3/6.0/6.2 Engines
www.texas-speed.com
With either route, labor is going to be the same (I'd avoid the dealer...$$$$$$$$$$$$$$$$$). Parts may total more going the AFM delete route, but you'll almost never have to worry about dead lifters again.