well now that you know how to adjust it you can retard it slightly and see if that affects that noise, like from 8*-->6* see if that helps. The issue is the more you retard it the more power you lose. So I run mine right at the spec of 6* for the 4.3 and run high octane gas. A lot of people don't realize that these old school engines in marine use can accumulate carbon build up in the combustion chambers and on the tops of the pistons, this has the effect of increasing the octane requirement of the engine. Old school engines, that run cool (160* vs 195* in an auto application of the same engine) and run relatively rich fuel mixes, can be prone to carbon build up.
Is the tank full? when you fill up try 89 or 91 octane if you can find it. I have no regrets using the best I can find. Don't want to burn valves & pistons because of low octane gas.