Try a known good distributor?
Reluctor on upside down?
Rotor has correct alignment to reluctor? Dont know how to check, but someone should know.
Could something in the efi be causing a delay in the spark?
The efi needs a signal as well,maybe its the part that needs the 40 degrees.
Two new hyper spark distributors and a MSD pro billet all acted the same way. This sniper is not controlling timing anymore it gets a speed signal from the CD box so. The distributor and the CD (6AL) box control the timing completely