The torque is dry. If you haven't, look here: https://www.gregmarsh.com/MC/Norton/NortonTorque.aspx
As far as the ignition timing, I said slight. I hope the old brain is working today:
Stroke 3.503" so 3503 thousanths
You said the difference is .0037" so 3.7/3503 = .00106
360 * .00106 = .38 degrees so very slight.
I have no idea why the bolts/studs and nuts are not supposed to be reused. Certainly if staked both the nuts and bolts/studs are damaged. It may have to do with that, or it may have to do with stretch, or is may just be an urban legend.
The MK3 Workshop says Locktite and 30 ft lb.
The pre-MK3 says 25 ft lb.
Neither says staked
Neither says new bolts/studs and nuts.
Don't know where I read/heard to use new - sure would like a definitive answer - tired of paying for new sets!