Follow the timing procedure until you back the wheel to approach TDC. The contacts should click and the ammeter move. On the TDC tool this occurs actually, at best, 5 marks from TDC. The eccentric cam will not adjust to the point where there is .8 mm difference between the snap and TDC. In the past, I left the adjustment at 1 gradation on the tool. Starts great there and runs good. the distributor shaft slides in and out 2.95 mm and is rubbing against the point's base plate. It just seems like a timing gear has jumped a tooth.
I really don't think that the gear can jump a tooth, because of the limited clearance over the gear in the timing chest. But, I never really measured it. However 2.95mm isn't enough to let it come out of engagement with the idler gears anyway.
And the likelhood of that gear nut just backing off is very small. But you may have to take off your timing cover to check its tightness, if you think that it might have loosened up.
Check the screw in the middle of the shaft that you can see when you remove the distrbutor cap, to make sure that's tight first. The advance plate is on a tapered fit to the main distributor shaft, and it could slip or get loose, so check that center screw.
Then see if you can grab hold of the breaker cam on the center shaft, and rotate to the right, and see if it can move about 1/8 of a turn to the right, and is should spring back after you let go.
If you can't rotate that cam, then the advance mechanism is stuck, possibly in the full advanced position or maybe part-way. You should be able to twist it to the right, and it should spring back by itself.
And if that is stuck, that might be why you can't get the cam to open the points at the correct spot before TDC. Because it's stuck advanced.
So, basically you have to troubleshoot your distributor, and possibly disassemble it.
You might have bent pins, or the advance plate might have slipped and need to be re-positioned, or whatever.
Are you capable of doing this?