Camshaft is advanced one tooth [many early NE motors were shipped with the camshaft advanced correctly]. Camshaft lobes look normal [good]. Camshaft is NE version.
If the lobes aren't damaged it simply means the lifters were softened to delay the failure. If you inspect the lifters closely you will notice the have been heated and you will be able to see where they were torched. Softening the lifters saves the camshaft lobes, however the lifters will soon destruct. Not sure why, but the exhaust lifter almost always wears out first, and it is important to avoid finger contact with the base [it can cut you like a razor blade].
This issue can lead to serious motor damage, and a lot of time trying to figure out why the motor appears to run worse with mileage. As the lifters wear, the clearance increases, and then the motor becomes hard to start, losses power, and is just weaker. The lifter clearance can be reset, and as the lifters wear more the problem returns. In extreme cases, the metal from the exhaust lifter falls into the camshaft bearing, locks it up, and BINGO, ya need a new motor [it can bust the crankcase, and or spin the bearing in the case].
The solution is simple, just get a good set of mushroom lifters. Please note I mentioned a "good" set. In my opinion, the lifters offered from Taiwan are far from a rating of "good", as they are too heavy, bases are seldom level, and they are too soft. They can be made to work well, however it requires machine work. They must be center drilled to reduce weight. The base must be ground level [not cut with a tool bit]. The mushroom must be reduced in height because of weight and can contact lifter bosses in some crankcases.
Please be careful when purchasing mushroom lifters, as some are really bad [lifter O.D. under-size, too long, too short, wrong base metal, ultra soft, etc].
Lifters should be made from Chromeoly or hardened steel. Some exotic metals don't survive and make poor lifters[magnesium., titanium, etc]. Remember the lifters must run in an aluminum crankcase, and some metals don't do well against aluminum.
The correct setup is hard mushroom lifters and the camshaft lobes not as hard.
Now the big question! Just how long can your run the motor with softened lifters? Some have defected in less than 15 miles because the lifters seized in the lifter bores, while others have lasted for a couple hundred miles [depends on how the lifters were torched, and how long]. It think most are in trouble in less than 100 miles.
Hope this information is helpful.
Have fun,