Yes, the steam leak at the whistle is undesirable, but does not look to be enough to cause your engine to run down as it does. Does the Esbit flame seem to be reduced after a minute or so also? Perhaps you have some old fuel that has absorbed water from the atmosphere, though that usually isn't too serious of a problem either. Perhaps the whistle leak is actually worse than it appears and certainly should be eliminated or reduced as best as possible. The other place where steam leakage can be critical, and harder to detect, is at the port face. If the port face seal isn't very good then that could be where your boiler pressure is dissipating?!?!
BTW ..... Welcome Aboard, and I hope you get that fun little engine going to your satisfaction and delight!!!