Anvilhead, what happens when the dizzy is bolted down without the tang being lined up in the slot in the end of the cam is that the back of the distributor case cracks just like yours has. Usually they break. Your dizzy has been abused.
Clearly the rear bushing was running loose and off centered for a long time! It should not have fallen out when someone was reinstalling the dizzy. This bushing should be so tight it should have to be driven in with a hammer and bushing driver.
That rear bushing cannot be flopping around or your points cam is not going to be able to hold the .015" points gap consistently, and then your engine will not run smoothly. It needs to be tight in the distributor case and the cam and weights also need to have no play in that bushing.
I'd say, bite the bullet and get a new or used case without cracks, and a new rear bushing.
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