If the timing chain is badly worn the ignition timing will be retarded. If I read it correctly, the case here is that it's too advanced and the available adjustment has run out. There's a simple way to check the camshaft timing shown in the shop manual using a DTI on an inlet valve. One tooth of mistiming is 10 degrees, so it's pretty obvious to see. Here's a thread from when I asked myself if my valve timing was correct or not. Mine was fine but I had to check it to be sure. I used the method documented in the shop manual this thread is how I did it.
https://www.xs650.com/threads/camshaft-timing-is-my-engine-timed-one-crankshaft-tooth-out.66347/
https://www.xs650.com/threads/camshaft-timing-is-my-engine-timed-one-crankshaft-tooth-out.66347/