You list your engine has a Cutler (now Holley?) aftermarket MPI system . I don't know anything about the Cutler or Holley MPI set ups as to what original ignition parts they may retain , but FWIW would only mention my blue 2003 5.7L MPIs do not allow any adjustment of timing by owner, as base as well as advance is completely controlled by the ECM. On my engines, turning the distributor base only adjusts the (distributor) Cam Retard angle and that can only be read via a MEFI diagnostic tool not a timing light.(I check mine a couple times a season to confirm the CR parameter is still within the required 45 +/- 2* spec to keep the ignition pulse arcing to the dist. cap electrodes when the rotor is close to limit heat, ozone and corrosion to those parts.
Jim Pend is correct in that the specs for the original 454ci/350hp engine ignition parts called for 10* BTDC base timing (at 750 RPM)., at least according to the owner's manual for all models that came with my original 1988 Crusaders and I believe that covered at least a few previous years. Specs for WOT were 4200 min and 4400 max RPMs. No spec for total advance but at the 89 octane spec'd in the manual I'd ...think.... it should be "all in " with ~~ 30* at 3000 RPM or a little higher speed with the original setup.
Do you by any chance have any of the installation and maintenance paperwork from the previous owner? I noticed you asked about the Cutler MPI on those engines back in about 2007. No ignition expert here, but 20* BTDC sounds wildly high at 700RPM .
Are you using an advance timing light or just a basic one and counting peaks and valleys on the timing marks? As I recall , and that isn't saying much, the timing marks were spaced so peak to valley was 2* , thus each peak was 4* from it's neighbor, but adjusting an advance timing light to the desired number of degrees BTDC and adjusting the distributor base so the light read 0*BTDC on the timing marks was easier to see correctly.
Could the engines have been rebuilt at some point with different cams? Curious- What were the original points and centrifugal advance distributors (& ballast resistors) replaced with?
I can't picture how a knock sensor would have been installed in or on the old block but that doesn't mean it was not . (I think GM introduced EFI versions of the 454 in 1987 .)