A stock large cap HEI may not like the additional current required to jump a .060" gap. GM specified .060" for the HEI's first year (1974), but they had so many failures they changed it to .045", as I recall. I didn't read how the smaller gap affected your engine performance, but that would be very strange indeed for it to be noticeable.
"Vacuum advance plugged."
That's great if the throttle is always wide open! You have nothing to lose and everything to gain with 10-12 degrees vac advance. But choose the canister carefully, Many of the stock ones had as much as 25 degrees or more, which means you have to back way off on your total (initial + centrifugal), which of course is very bad for WOT performance. A very common mod is to limit the "pin travel" on the canister. Of you can use an AR12 / VC1835 canister.
The big thing with Vortec heads (besides very good flow at low-medium lift) is they only need around 32 degrees total advance because the flame front travels much faster than old school heads with D-shaped chambers.
I didn't read everything you tried, but this should get you in the ballpark.
12-14 initial
32 total, all in by 2500-3000 RPM
Now connect the distributor to a manifold vacuum port.
In the ideal world, you would have 10-12 degrees vac advance at idle. So that means 10-12 initial + 10-12 vacuum = 20-24 degrees at idle.
Vac advance should start to go away at 10-12" vacuum and be gone at around 7-9". The only real way to test it is on a bench with a vacuum tester like a MityVac. FYI, as I recall, 10 degrees advance = approx .120" pin movement.