Vacuum advance uses a linear motion to rotate pickup around offset to the axis of the reluctor so that the gap changes is only logical, but like this it gets really close. It looked like it was touching at first but my 0.05mm (<0.002 in) feeler gauge wil go through so probably wasn't any real contact. Does make some ticking sounds, but inconsistent.
So yeah, something is wrong here.
But before I fixate too much on this, what actually changes with a wider/narrower air gap than the specified 0.008 inch? Should it matter how close the gap is, as long as there is no contact?
I have never found a good answer to that question and I have looked a few times.
However, I have read that one of the reasons for the .008" spec was to allow for any gap change as the vacuum advance moved the assembly. I've never been able to find any solid source for that claim though, so I kind of dismissed it, but this discussion does make me wonder...
It has been shown that variance in the reluctor diameter will change the gap, and that is often found in cars that have been running just fine. It also makes some sense that 99.9% of the mechanics that have checked the air gap, did it in one spot on the reluctor and not all eight, so again, .008" might be the compromise that Chrysler has figured would allow for all the tolerance "stack up".
IMHO, there's probably not too much difference as long as the gap exists and the gap isn't so big the magnetic reluctor and pickup still do their job by telling the ECU it's time to fire. Unlike points where dwell time for the coil is determined by how long the points are opened/closed, the dwell time is set by the ECU and the pickup has nothing to do with dwell.
The gap does get smaller for later cars. .006" for 1977(? IIRC) so there may be something there... But I don't really know.