CA (your name could be here!);
It looks like the Dist Drive Gear is too high, this suggests it is not fully engaged with the Oil Pump drive below...so rotate Crank manually and slowly in the normal direction of rotation while applying slight downward force on the DDG until it drops in, then continue rotating Crank to TDC No.1 and see what alignment is compared to the factory nominal as pictured here:
Source:
https://www.sw-em.com/Volvo%20Igniti...%20Scratch.htm
...if you're lucky, it does...proceed to Static Timing, but if this alignment condition does not exist, pull out DDG rotate to achieve this nominal alignment, repeat procedure as necessary until it is as shown at TDC No.1.
Then Static Time.
...once DDG drops into Oil Pump Drive fully, I expect Dist Clamp will seat properly and Dist drive will engage DDG as it should...
Good Hunting!