It's not clear from the revised title either though. In fact I found it even more confusing. The issue is the ambiguity of the wording "with a two-stone handicap", not where it's located in the sentence.
Sir, have you considered a career in social networking engagement?
Edit: 10 years since i made the HN account and I only now notice you can't see the scores of other people's comments. Here's hoping the brilliance of the above comment is appreciated.
The problem is that "with a handicap" is in itself ambiguous. People sometimes use it positively, sometimes negatively. That is, you say that Shin had a two-stone handicap, that can in itself be understood as either "Shin was given an advantage of two stones over the AI" (the reality) or "Shin was playing with a disadvantage, giving the AI two extra stones" (the more common reading of "to have a handicap").