Anyone ever disassemble a distributor - need help

The point cam lobes are designed to operate points, not a Hall trigger. Hall targets should have a sharp edge trigger, and be made from soft low carbon steel. Trigger target should have abrupt change, not a ramp.

Yeah, engine may run, but timing may be irregular by a few degrees, for every trigger. Most won't notice. A logic analyzer can capture triggers, for checking timming errors. Timing settings will likely need to be retarded to accommodate timing irregularities.