Timing issue 360 LA

You are correct here. It is DEFF off, from what I read it the rotor button should be pointing to around the front intake bolt, mine is pointing to the firewall. If I arrange my plugs in the right order tho does this matter?? Actual to think of it the rotor button does not point directly at a spark plug its in between a plug. Could this be the issue? Should I arrange this gear so that my dist is pointing to the correct spot? I thought as long as my plugs wires were on correct it would be fine? As long as at TDC #1, I put the #1 plug wire where the rotor button is I am ok?
Where the slot is in the shaft has absolutely will have nothing to do if you can time the car. Nothing. You are correct, you can move the position of the plug wires on the distributor to compensate for this. It's only better to have it there for simplicity of assembly and putting it kosher as in uniform to how small blocks are. Less confusing. But moving the plug wires will compensate for this.