Milodon's instruction sheet says if you go too tight on lash, the gear will run hot. They state .006"-.008" if you are checking it with a dial indicator after the fact. As always, real-world experience might be different.
At .006 they made noise. At .003 they don’t. I also make sure there is pressurized oil on the gear train by drilling a hole in the GD mounting plate and I drill a Holley air bleed to .040ish and screw that into the plate.
That way, there is pressurized oil blowing into the timing cover and not I’m not relying on the oil mist floating around in there.
