Thinking out loud
The machine did not have points from the factory
So there is always a risk trying to adapt to something that was newer there to begin with
Most likely it is possible
Now i see mr GLJ post here --- A major manufacturer does not put in man hours
fabricating a seat for an old bushing one not intended to use.
There is also the parts that you don't have I would assume
Advance rod / Coils / Advance Unit with springs / Points / Capacitor / Bushings
Dont know if the frame has mount points for two coils which by the way do not have the best reputation
There is also slight differences in advance specs between years. No major thing I do believe.
I don't know the prices today but when I got problems with the advance unit I went for Boyer because then the advance unit in itself was so expensive E 62 -- $ 73
https://www.xs650shop.de/en/cylinderhead-cylinder/729/advance-unit-compl.
You need to have a strobe light for adjusting timing each year more or less.
Having said that I myself at times are thinking about going back to Points but my bike had it from the beginning
I have all the parts including bushings.
Even though they are worn It would be doable . With new springs and serviced bushings.
I had lots of problems With the points ... Probably world record holder kicking an XS 650 most number of times.
Weak charging / Not serviced bushings ( did not know of them ) / Oily inside / Substandard wiring
But the bike ran excellent middle and top rev . That is the reason i think of go back to points