Your first picture with the adjusters showing all the thread poking out, do the rockers move up any further if you pull them? They shouldn't be able to more than the .003 or whatever they are set to.. If they do it's the cam 180 out. 360 at the crank.
You mentioned earlier that you turned it over 360 from 1 to 4 and said 4 were loose, and you adjusted them. Weren't they all loose when backed off? How loose were they? like 3/8 of an inch or feeler gauge loose? They should have been the 3/8 type loose otherwise your cam is 180 out. 360 at the crank.
Ignition is irrelevant at the moment.
The notch in the cam can be at 3 or 9 o'clock.
If at 3 o'clock, no. 4 is on compression,
If at 9 o'clock, no. 1 is on compression,
In your picture the no.4 tappets are ready to adjust.
Turn the crank 360 degrees and no.1 tappets are ready to adjust.
Does the manual say set the cam to 3 o'clock and set cylinder 1 tappets?
Because that is not right. 3 o'clock gives no. 4 on compression. Like your photo shows.