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Verified TDC with the lower timing mark and a screw driver thru the spark plug hole. Here is where the cam gears were at. Still not aligned perfect if looking at the notches on the tooth. But, if I jumped either gear a whole tooth I think it would be farther off than it is now.
Yep I think that’s as close as it’s gonna get with your parts combination. I’ve ran a couple engines that lined up like that with mismatched cylinder head and block plus decking on both without issues.
It looks like your exhaust cam is one tooth advanced... at this point, I suggest you level the marks on the cam gears and THEN take a picture of the TDC mark on the crank pulley. It doesn't appear that you can get an imaginary straight line through all four marks... that means that the cams are not in phase with each other. It is not uncommon for the TDC mark to be off slightly due to head gasket thickness, cylinder head milling, block surfacing and belt stretch. So, focus on the cam gears being proper and as long as the crank gear is say within 1/4" +/- of the TDC mark on the lower timing cover... you are good. From that point, adjustable cam gears will get the proper timing set if you actually degree them.