VW beetle 2003 tdi compression leak

I purchased a 2003 VW Beetle Diesel and have compression leaking from the valve cover around the number 1 cylinder. It does not run or will barely run. Is this a common problem and what could cause this. i haven’t tried anything yet.

I assume the “check engine” light is on? Cylinder compression does not leak from the valve cover. Unfortunately it can only leak from a valve (if you are lucky) or from a piston ring. Either way, it can mean major engine work or a new engine is needed.
If you recently purchased it, I hope you have a warranty of some kind.

Number of miles on car??