Unfortunately my information is missing engine Type 329 but the short-block replacement list does include it (doesn't give use).
I think it was a chainsaw engine, I can see some of the starter housing screws have nuts on the back, this is because most of the screws would have gone through the back-plate and straight into the chainsaw tank.
The starter is the wrong type for a 13B, but fitting the 13A or Compact I, II or III type would also require a change of flywheel as the starter dogs are different.
It's strange that it uses a very late coil, but the air filter is only a single stage type, possibly been added as some chainsaws use a completely different type.
Of course none of this really matters if it was a new spare chainsaw engine that was setup for a shop display.
For comparison this is an engine that was on a Mustang Model 13 chainsaw.
And here is the same engine on this chainsaw.
David