Help please - Cam timing experts

image.jpeg image.jpeg Alright, so we checked with the crank at TDC, both compression stroke for #6 (dot to dot - 6 o'clock and 12 o'clock. And on compression stroke for #1 (dots at 12 o'clock and 12 o'clock). Can't see a problem inside. Next we're going to try to degree the cam and replace the timing gearset as a precaution incase it was off from the factory. ?

Anyone have any thoughts on this? We replaced the entire ignition system with an MSD mechanical advance distributor, msd 6a box, new plugs, wires, changed from eddy 650 carb to a known working Holley 600. The engine still has to run off the yellow painted mark on the balancer as timing point. I believe it takes tons of advance off the scale (stock mark) to run well enough to drive. I'm really frustrated here on what to do next.

Bottom end has good compression. 150psi all around, one has 160 and one has 135. Don't think that's the issue.

72 block /
.020 over Keith black 10.5:1 Pistons
U heads with 2.02 intake valves, which look to have been hogged out both sides. Comp cam xe-262, A904, with 8 1/4 rear open.

Any additional help is greatly appreciated.

Thanks