I have 2 &3 crossed and it ran good but smokey.
In the finish I took rocker cover off to check number 1 opening and set timing from there. That was 180 out.
Mate check your plug leads they look like they out of order. Mine was the same run ok but smoked for 4 years then after a tune up found that plug leads mixed up sorted that smoking cleared. Looking at you pic #3 is where #1 is on mine
I got the carbine on my B1600 rebuilt at a shop in Manaukau City cost about $400. I t came back all set to factory specs just bolt it on and start it up. They did a good job on it came back like new