The distributor has a two wire connector that comes out of the center of the distributor, I assume for the pick up, does it sound like it’s bad to you? Is this distributor known for failing?
So you originally had the Merc Thunderbolt V on this , didn't get the performance you were expecting and swapped in a Delco EST ( normally both are very good systems). On the Delco EST you are on your third ignition module? I have seen postings here that the aftermarket modules cause issues like not going into base mode.
If you set the timing not in base mode (timing will be locked from electronically advancing) , you r total timing will be retarded and not have enough advance. In base the timing should hold steady when you pull the 12 v off the timing should advance to like 15 degrees or so.
Yes could be a bad pick up or bad cap and rotor would try a spark gap tester to see if you are loosing spark from coil to distributor to plugs
Bottom line erratic and inconsistent you either had a bad timing light or a ignition issue. Most auto parts stores will rent you timing lights and yes you can use and advance light to see if you have around 30 degrees total advance at 2800-3000 ish