You will need to explain how closing the exhaust valve later causes heat.
Your cam is not badly retarded.
In fact, if you check it again without the rocker arm you may find that is a close to having the correct timing according to the cam card.
Secondly, we run camshafts 4 degrees retarded frequently to gain more upper rpm power.
We just recently retarded the cam timing on the puling truck 8 degrees (from 4 degrees advanced to 4 degrees retarded) and picked up power.
The ignition timing stayed the same.