I'm still trying to make sense of the motor turning by hand fine but having interference after starting. If that's the case it seems the physical setup is okay for piston, valves, head but the variable may be in the timing chain assy like others alluded to.
Thinking out loud...
You might be able to check valve clearance on exhaust and intake to determine which valves have issues. If valves are bent they usually have excessive clearance. It would be good to know if they've contacted on both sides. You said original stock cam and 9.5:1 compression...
Not the same but maybe there's something you can get from it. I made a "lathe" for polishing my Style 5 wheels. If you can figure out a coupler for the splined shaft that would make things easier.
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