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TJ It seems like you have done most everything, only to get the same result. Unfortunately, that means we are missing something here. I understand your frustration, we have all been through situations like this….Sometimes, it is best to step away from a stubborn project like this for a bit, giving your head and chance to clear and start over again.
You have replaced the plug wire, but I am still not convinced that a short does not exist between the cut out wire and the mag plate. Those darn wires are really crammed in tight under there, to the point of just about being pinched. I guess if it were me, I would disconnect the darn cut out leads from both breaker point posts and tuck them away/tape them off…Then retest.
You have already had a few sets of points in there, so I don’t know if a new set will make any difference. Keep in mind that BRP had issues with some OEM points that were not manufactured correctly…So, if you can not set the gap correctly using the offset adjustment screw, please know you are not going nuts.
Joe makes a good point about a wobbly mag plate, or perhaps a loose upper crank bearing that can create a variation in the point gap. Have you tried to “wobble” the mag plate from side to side? With one set of points open and the flywheel nut (only) installed, try to wobble the crank from side to side in the block to check for a big variation in point gap. How about the post coming out of the mag plate, is that somehow loose allowing the points to wobble around. Not likely I’m sure, but a possibility.