That is the issue with some of the Tech Time's on Ebay, some were made for other engines. If you want to use the probe method some have had to drill out the hole or grind down the tip (Could cause it to break if not careful.) to make it fit.
Also as I recall there is a warning not to hook up the timing probe until the unit is powered up. Double check in your manual, I have not heard of folks having a issue, but often folks say the probes later do not work. I wonder if due to the fact they are fragile, or many just made the mistake of hooking up prior to powering up.
When using the timing light method, the light will be erratic but I find generally at 2,000 rpm the light seems to even out and only miss a blink occasionally but does not seem to bounce the timing all over. Just goes on and off, the timing mark seems to mostly be in the same place. So do not be concerned if your light evens out at 2000 rpm. Now if your timing is all over the place at 2000 rpm, then your pulse sensor/piezo is not reading right, or your light does not like the Tech Time. (Move it, do not place on turns in the pipe, and sand the paint off the lines before putting it on.) Many have had to try a different timing light to get it to work with that metal pulse bar. I use a Snap On and I have pretty good luck.
Yes you can set the timing to 9.5 degrees BTDC as many like it there. Ford said 8.5 degrees BTDC, you choice. Per many a member who did, do not leave the IP loose when starting and try to adjust. Shut off, adjust, retighten, and then re-check.
Keep in mind you need to do the 20 degree offset if you use the probe on the crank dampner. (Not the timing light.) That is because the hole you are supposed to use is not at TDC. It's 20 degrees ATDC. There is a smaller hole at TDC, but that is not the hole you should use. If you use the timing light, you do not use an offset, rather you set your timing light to the desired timing (9.5 or 8.5) till your dampner timing mark is at TDC. That is because there is no 8.5 or 9.5 marks on the timing tab coming off the gear case. So the only known mark to align up with is TDC. So the advance on the light causes the flash and what you see to come 8.5 or 9.5 degrees late. Thus flashing on TDC but the engine is at say 8.5 BTDC.