The picture of the distributor shows perhaps an advance of 40 degrees based on the reluctor. A better guess if the picture was taken over the rotor shaft.
I think you have a phasing problem related to a swap of the pickup coil connections. I think the pictures shows a splice at the 2-wire connector. If the connections are reversed, both the timing and rotor phasing will be off in a way, that cannot be corrected by just setting distributor.
Reverse the connections, significantly re-time and you should be good.
Attached is a picture of a VR sensor signal (top) and ignition trigger(falling edge on bottom). The VR signal needs to go low then high, in your case the signal is flipped, creating a significant problem.
The other problem in phasing is often caused by the reluctor being installed wrong, one position for SB, the other for BB that has reverse rotation.
