This isn't a fix for the no start, but may explain why your cam lobe description seemed to baffle me. If you looked straight down into the oil fill hole and called that cam #1 and the next one back #2, that would explain your description below:
"I lined up all three timing marks, the cam lobes were in the position I stated before=#1 horizontal pointing out/#2 slightly down pointing in."
That's exactly the positions for #2 and #3 cam lobes, with the cam sprocket at the 0° degree mark. I just checked it on my spare camshaft.
To see the #1 cam lobe, you have to look forward from the oil hole.
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