I'm leaning to the side of carnuck...it does seem something is amiss in the timing chain installation.
Harmonic balancers on 258s are built with a rubber cushion between the hub and the outer ring where the timing mark is. Even if the balancer appears OK the ring may have shifted on the hub a bit. That will throw the timing mark off and render a timing light useless.
There is a method by which the installation of the timing chain can be verified. It involves using a dial indicator on one of the #1 or #6 pushrods and measuring the lift as the crank rotates past top dead center. There are some other details, such as accounting for the hydraulic valve lifter, which I can't remember. And it's going to be tricky knowing exactly where top dead center is because of the well-used harmonic balancer.
Having said all of this, it's going to be easier to simply take the timing cover off and verify proper timing chain installation. It's not really difficult to do so, and the only part necessary to remove to gain access is the radiator.
It seems to me like this issue should be the responsibility of the shop that originally installed the timing chain.