Is the front seal in the timing cover of a 318 from a 98 Dodge Ram 1500 supposed to be profiled to the face of the timing cover or flush?

i would say flush

Most people do, which has turned out to be the problem. In this particular application there is a ridge inside the timing cover. There is a receiving lip in the seal. When the two meet STOP, trying to make the seal flush to the face will damage the seal because this particular one is supposed to be profiled at 4.0mm above the face.

Correct, the bottom of the seal retainer will bottom out in the timing cover before it is flush on the outside.