how does a 318 engine run if timing is off ?

I have 9.92 volts in running, 9.5 while cranking,
Fix it. You should be aiming for at least 14v or more at idle.

Also if the spark plug doesn't reach far enough into the cylinder it is igniting the mixture at the boundary layer at the chamber wall so its not going to be the best mixture to get the burn started correctly.