Do faulty faster shutter and compensation with development degrades image

I have a faulty Olympus XA2 takes few stops darker images. I could not undertand what it does , I guess it does not do twice whatever it does.

I am thinking to order development compensation. Does it degrade image quality ?

Yes, that would be pushing film, in other words increasing contrast. Instead, set your ISO dial a few steps lower to compensate so you get a more accurate exposure.