It's easy to get compound angles, X and Z, on a CNC lathe so the compound axis isn't critical. In fact, the compound adds a lot of flexibility which isn't desirable. As others have done I replaced the compound with a riser block. It is simply a block between the cross slide and the tool post, a very solid replacement for the compound slide.

A pair of T-nuts and counter sunk cap screws hold the block to the cross slide. The riser block, and thus tooling, must be held solidly. A slide that is a nice sliding fit to the T-slot is mounted on the bottom of the riser block. It is pinned to the riser so it can be removed and replaced in the same location. This can be seen below. The compound slide fit into a hole on the cross slide. A short post was put on the riser block to fit this hole. The post is fit into a reamed hole in the riser so it can't slip and can be replaced in the same position if removed. The riser block is moved outward compared to the compound due to increased travel of the cross slide. All in all the slide and post hold the riser block in the fixed location while T-nuts and cap screws hold it solidly in place.

A small block is mounted to the top of the riser to prevent rotation of the quick change tool post. It is pinned in position so it can be replace in the same position if taken off. I put a piece of masking tape where the retaining block sits, then used super glue to place the block in place. This held until I could center on the reamed holes and extend them into the riser block. Once the holes were reamed the part easily came off the the masking tape interface. Then clean up the super glue on the part. This worked well. I tried to make it a light press fit to the tool post but it came out slightly loose. Thus, a shim is placed between this block and the tool post.

The picture below shows the retaining block and tool post bolt installed. The next shows the tool post installed. In the second you can see the shim as installed.

With the retaining block removed the tool post can be turned to any direction, then replaced when alignment is again desired. This known alignment is important on a CNC lathe. If the X and Z axes are slightly off, for example from homing, only one tool needs to be reset. But, if the angle of the tool post is upset, all the tools need to be re-calibrated.

I haven't used the lathe extensively but as yet have not missed the compound. If needed it can be put back on without much trouble. And, more importantly, the riser block can be replaced just as easily.