Just look at the cam lobes. It is essentially an egg shape. When the rocker arm is on the round section opposite the peak this is the place to set the valve lash.

 

So I just went to adjust my valves in my lunch break. 5° for 22-REFI, 0° for Carb 22r
It went exactly as described. Everything was perfect. Number 3 intake was a tad too tight. Couldn't get the .20mm in there without some "force".

I have gone backwards and forwards turning the crank. No issues will arise.

Just looses all valves almost all the way. Go piece by piece. The valve you are adjusting should be making contact on the round part of the cam, not on or at the start or end of a "bump" aka lobe.

For reference I made you a little pic, to see that we are on the same page. Example one is "loose valves", two and three will be tight in any case.




If everything is correct, and you cannot adjust valves - compression tdc on each, intake and exhaust WILL MOVE and be on the same lobe position for each cylinder. If they do not, your chain has "jumped" or was installed incorrectly. What you are hearing is the valves tapping the pistons.
Alternative:
If you cannot adjust it, possibly the valve seat has sunk so far it's out of spec - aka not adjustable any more. New head is needed, as it could be some "cheap china POS"? Can you verify OEM?

But why is the distributor pointing wrong? well, either the person that did the chain left it in there while doing the chain and it is now pointing wrong. Number 2 just fired way late, and number 1 will fire way late. How is the timing? jumping all over the place?
If it was just inserted wrong, the valves would line up and be adjustable.

Based on my experience only. Anyone wanna chime in?

1. camshaft not in correct position to crankshaft. Check: Every tdc on compression, loosen intake and exhaust all the way. Verify lobe is "flat" on both valves. Adjust. Next cylinder. Can adjust: Go to number 2. Cannot adjust: remove timing chain cover. You will anyhow.
2. dizzy in wrong Check: number 1 is now ok, remove and insert correctly. 3. Problem persists Check: Go to number 1

 

Do you have 2x 22-RE?

Just verify cam lobe position on the other one for reference?