1970 bug. I don't know the history of the motor. It does appear to have a cover plate on the case where a type 3 might have an oil fill tube. Maybe a later universal case? I am checking the valve lash. The 4 valves I have checked all have to be backed off about two turns to have any gap. One of them I removed the adjuster screw and the rocker arm is touching the dang valve stem still with NO lash. So then I go to check the 3/4 side and they all have no lash so I just stop. WTH? Engine at TDC, rotor pointing at notch on distributor. I verified with spark plugs out piston at top of travel. I checked the distributor driveshaft and it's orientation is close. Engine case # 211 101 101 D.

Oops, that is not the case#. It is a number cast into the lower side of case below pushed tubes. The case has no number.

Post a pic of the case please.

From the top?

OneClick to view attachment

I believe the cover plate is in place of the mechanical fuel pump. Stock Type-1 motors came from the factory with solid lifters. Not sure how to diagnose if you have hydraulic ones.

The type 4s were available with hydraulic lifters, but I don’t think other types had them available. You might also check on Samba.

I believe the very late Mexican beetles had them,I remember folks used to convert them over it was a bit of a fad @ the time,Bernie Bergman used to do them on his rebuilt motors.
Yours looks like a fairly early motor someone could have converted it,I think they ran with ''zero" valve lash from memory.
They were known to take a while to pump up if the motor was unused for a extended time ,perhaps due to the type 1 oil system.

Thanks for the input! The heads look relatively new and the motor possibly gone through at some point. Filter assembly coming off oil pump.