Cam and timing set install question

What you are seeing is what I would expect for a cam correctly installed. The cam has 0.013" more exh lobe lift than the int, so that extra exh lift comes from reducing the cam base circle for the exh lobes. You are seeing that with the exh lifter sitting slightly lower than the int on #1 cyl, TDC compression stroke.
Without rotating the engine, #6 cyl at TDC is on overlap, with both lifters higher in their bores.
Exh lifter should be 0.010-0.030" higher than the int because of the extra 8* of duration.

With 4* of adv ground into the cam, the ICL should be 4* less than the LSA, with the '0' position used on the crank spkt. If LSA is 108*, ICL should be 104*. So instal on the '0' mark.
I do not agree that you need to degree the cam any further, unless this engine is an exact duplicate of another engine that had the cam tested at various ICLs to determine best HP.
I see people go to great lengths to degree a cam & finesses the position......but then do not check all the other cyls to see if any are 'out'.
Once the engine is running, you can change ICLs to see what difference, if any, it makes.