Make sure the timing marks are true on the pulley and scale, worn out main pulley can shift the outer piece and show wrong timing.
In short
Remove tappet cover and rotate engine to cam timing mark (hole), then view the crank mark, it should be zero and distributor should point to cyl 1 perfectly. (Please make sure you have a real 4afe distributor with the correct 6+2 wire plug)
If its not then cross check tdc from cyl 1 piston position and ensure engine is 100% true time.
If it is in mechanical timing sync and mark is off, make new mark for zero point where engine stops at tdc and recheck ignition timing, make sure timing gun is full analog, if its not then rotate its dial to zero when checking.