I'd be interested to see the ignition. When I was a teenager I had a DT1 1970 model I think and it came with a GYT kit that the previous owner had purchased for it but not used but only had Head, Barrel, Piston, pipe and carb. There was a different gearbox with some of the early kits but perhaps the local importer only ordered part of the full kit.
I still think you may have a mechanical issue with the points over .008" as electrically it doesn't make any sense. The duel will change with the gap but it would have to be extremely wrong to stop the spark or the rotor phasing could be out but if its all original I'd doubt that was the case.