I'd take the belt off and see if it's flat or all wavy and twisted. Is the vertical ok? Sure you'll get a better response soon there are some belt gurus on here but if doubt, change it.
The valves will still close. At best it'll run crap/difficult to start but worse case you'll get valve to valve contact on the overlap or valve to piston contact. The 'T' slots in the cams should be aligned the same. The inlet is correct. as said above, the exhaust looks to be one tooth out.
i've pulled the head and no damage to valve gear or piston. Also slipped the cylinder off and big ends are good. I'm curious as to whether a tooth out like that would cause the noise I heard. Like a loud dang dang dang, almost 2 stoke exhaust sound? I went all over the motor when running and couldn't pin point the noise from the innerds.
Gosh... Maybe if you're lucky it's just compression leaking from the mis-timed valve - did you try turning the engine over by hand with no plugs in??