You need a real good ground for the spark tester clamp —-- maybe try a different ground location on the powerhead or scratch a little paint off at the clamp point. An adjustable tester would let you initially pick up at least a light spark (say, 1/4 inch) while trying to set up the magneto (maybe $10 at AutoZone).
Each set of points should open when that cam on the the shaft pushes the contact point open at the lobe —-- that oblong high point. That would be the point at which you set the gap. With the flywheel off and the motor in forward gear, you can bump the flywheel slowly by turning the prop clockwise with your foot. (Plug wires disconnected from plugs.) You should see a set of points open at the point you feel resistance from the compression. Set the gap, and turn the prop again with your foot through the “bump” to get a half turn on the shaft and cam (180 degrees). That will open the other set of points, and you would set the gap on that set. You should then get spark if everything is working right.
Wires need to be tucked in so they don’'t contact the spinning flywheel (one of yours looks a little high, and might show some abrasion — can’t see for sure). Coils have to be exactly flush at the mounting points so they contact the flywheel but don’t bind.
Like HighTrim says or implies, you can temporarily set the flywheel and spin it by hand to check the spark. Take the plugs out when you do this, both for safety and to let you give the wheel a pretty good spin without compression. gearshift in neutral for this.
BTW -- need to be sure the flywheel key is in place and the flywheel is actually turning the shaft. Flywheel can spin on the shaft without the key properly in place, and there will be no spark.
