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top of the chain guide rail won't affect anything.
Would a Cam slipping only a few degrees like this cause a knock, as in, valves hitting pistons? I was under the impression it would take being out of phase significantly more than this to damage valves. If there is a distinctive knock then maybe you have multiple issues here. I would pull off the #5 or #6 intake cam cap and check for destruction. It might be seized up from a dry start after sitting for a while.
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