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The spacer ring only needs to be thicker than the retaining plate. The only thing keeping the cam in place (fore and aft) is the sandwich of cam (bearing surface) retaining plate/spacer, Cam gear and nut (sometimes a tab-washer too). The cam, without gear firmly attached, is free to bang back and forth. Therefore, seeing that it is not flush with the front of the block is not alarming, you should be able to grasp the cam and pull it out (don't or your day will get very complicated regarding the lifters!!!!).
New gear and retaining plate (and perhaps spacer) should make it all better.
Mike!
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