the second pic...you label as dirty, meaing th mark on the back plate.
If indeed when you clean off that dirt the marks align, then based on the other 2 pics, the engine is at TDC. You will need to rotate the Distributor to bring it into alignment.

Did you remove the Distibutor??? If so when you put it back it went in a bit off. If when inserting the Unit into the Block, you line up the Rotor to the correct #1 postition, when the gear at the bottom engages with the gear shaft in the block it will twist (If I remember correctly) to the Right-clockwise. To insert the Distrib in to block you need to start the line up a bit counter clockwise so that when it engages things are properly lined up.

Re: the 12deg =/- That is when settiing the timing with the engine running at 750RPM and using a Timing Light to align the marks on the Crank Pull and the Numbered marking on the Plastic Lower Timing Cover.

PS...Do Yourself a big favor since you are putting all this work into this Volvo.
Replace that WhiteCap with a Bosch Distributor.