Many thanks to everyone for their input.

Today I pulled the lifter screen again and found about 10? Tiny shards of metal/steel lodged into the screen. They were actually protruding and caught my attention as the screen was a bit rough to touch. I cleaned the screen very delicately in clean solvent transparent container and could collect them at the bottom with a magnet. Shards of metal about 2mm long and hair like thin, irregular. Steel for sure.

Run the engine for a moment with the screen screw cracked open. Got flow out but the oil was bubbly filled with ever so tiny foam bubbles and I thought iridescent with bronze particles.
So drained oil from the pan - it was all covered with an unbelievable /prob 0,5cm thick/ coat of foam. Still waiting for the foam to settle but I think the oil is really carrying the iridescent bronze particles in it.

So now this narrows it down to? Pinion and camshaft bushings, conrod top bushings or rocker arm bushings - the last one I don’t know if this is rollers or bushings. Something is slowly dying in there.

I am stoked by the amount of foaming in there oil and thinking if this foam is carried to the lifters they will never pump up properly.
Also - somehow I need to check the system for flow. I am suspecting I get steady flow to the rockers when on the starter motor but when the pump demands proper output it is not provided with enough oil. Thinking something is restricting the flow from the tank -
so pressure is there but flow is not when the engine is idling.

Today I remembered I found a piece of cloth, fabric, felt on the lifter screen twice. Maybe there is something in the tank that is not allowing the oil to flow freely to the pump and it is cavitating… I need to confirm this theory in practice.
I get nice flow on the starter but not even close so proportionally when the engine is idling.

This riddle is really taking my sanity away.

Agree on the crank longevity the milk has been spilt however. Now I need to know how much life is left in this engine. I will rebuild it in the autumn to the desired scope. Question is really will I be able to ride through the season. Still have other bikes - if it turns out the engine has been shot it will end up on the lift and I will do what is needed.

 

Not sure if you mentioned above..
when you replaced cam, did you check the fitment of the gears?( cam gear to pinion..and also breather gear)
Did you check your breather? (the gear and the bore)
Also when you make your own gasket, the thickness and squish is different than a manufactured product. This changes your endplay of all the gears, and different shims may be required.

 

The motor is toast. Ridding it any more is simply going to destroy what good parts are left if any..

 

Yeah, unfortunately with metal inside, it will most likely be a complete tear down, flush and clean, and rebuild.

I would also add about your lifters. You want them to be in the middle of there range to operate properly and safely. Tightening them all the way down and backing out 1/2 turn is a terrible idea IMO. I have heard using a similar method but it's more like 2 full turns or more back out if I remember right.

 

You really do need to listen to @Max Headflow
You starved the bottom man as I showed you in the diagrams of how the oiling system works.. A thousand kilometers/600 mi I'm surprised the thing didn't lock up..

If you want to keep beleiving that you'll be able to ride this throughout the summer and then tear it down in the winter.. That's your prerogative but eventually what you're going to end up doing is taking out the entire case/lower end.... So when do you want to tear it down and do the right thing...???

You asked for help and we're giving it to you.. You do what you want....

 

Thanks to all that took their time to look into this seemingly hopeless case :/ I have never fxxxked up a bike, that is going to be a hard and costly lesson.
Just to answer the questions above - the gears were timed ok, I took into consideration the thinner gasket and shimmed the cam so no problem with this - at least.
Apart from from the potential bottom starvation - I just don’t get the lifters being so noisy but maybe all of the necessary pressure is being bled by the pinion/cam bushings clearance now being too big to hold what the pump has to offer. Still want to check the pressure IN the lifter screen to see how much is being given but ready to take the top end tomorrow.
Time to dig in.

as per the manual - I had black and white manual of like 900 pages but looks like it was not the thing these above two pages come from. That is why I didn’t know what you were talking about - thought I had the right document in my hands. Need to find this factory manual - it will be needed.

 

So you don't think any of those shards go into the lifters? If you are getting crap into the lifter screen, I wouldn't be surprised if the oil filter is plugged up with the crap.

 

Will also dissect the filter tomorrow. This is enough emotions for one day.

 

Just so you know we're not banging on you but the fact that you blocked off the oiling port to the pinion which feeds the bearings main bearings and crank bearings the damage is already done we're only trying to help you we're not trying to knock you. I know it's a hard thing to accept but this is what you need to do at this point It sucks that you didn't have the right gasket to begin with and this is one of those lessons learned I guess. It's going to be expensive one but is what it is at this point.. Sorry bro...

 

bit of an update - dissected both filters covering all 3500kms I travelled.
cut steel and unravelled all the paper on the table.
The one run without the proper gasket was impeccably clean. not a piece of iron in it. the filter I run last 700 miles was also clean. Not a sign of anything metallic let alone ferrous.
bike still pushes 11.5bar compression both pots and 3bar of oil pressure when in highish idle. of course the rockerbox racket is still there 1-2 minutes after quite quiet startup.

today will pull the rockerboxes and arms etc to verify sizing and the nose cone.

will report back.