With the points loose or removed from the plate, you may find that the capture posts in the engine allow the plate to move about laterally, instead of just turn around the axis of the cam. A shim keeps the plate from moving laterally, so it's only movement capability is around the axis of the cam. The shim does NOT go behind the plate.
The shim goes between plate and 1 of the posts. For mine, it was the lower right post. But, you have to find the one that allows both points to align within their adjustment range. ...Could take three tries.
With the plate loose for adjustment, the points springs push the main plate sideways. I had one that you could see moving around with the engine running as the points would take turns pushing the plate sideways. The shim puts a stop to that.
The point gap also determines the dwell or the "coil power draw" time. Used points without contact reconditioning, I usually set to .014 or less as the gap gets larger with use.
Not that rubbing block wear can also affect the timing adjustment range, as a worn block affects the geometry. There is supposed to be grease between cam and rubbing block.
Cheers,