Someone has sent you down a rabbit hole, I had an engine that the cam was retarded 2 teeth (28.8 degrees) and it idled ok but ran like poo. The fact that you add more fuel (covering the cab with your hand) and it runs, tells you, you nave an A/F issue.
this right here I agree with.
And yes the key should be at 2 o clock when at TDC, and the corresponding cam timing dots line up.
