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While dorking around noticed this.Sunlight was just right to amplify, see how the cam chain sits on the sprockets. I'm kind of suprised.

Cam chain tension is correct, and doesn't slip a tooth, so it must be OK?

 

I don’t have any previous experience of those hy-vo type chains, so I’m not sure how it should look.  Whereas a roller chain would sit in the radius at the root of the teeth, the link plate chain is clearly different.  Is it a new chain?  My bike is in long term storage far away, or I’d have gladly had a look to compare with your chain / sprocket.

mine looked exactly the same when i had it apart recently, i must admit i was surprised it didnt sit lower on the cogs

HyVo or Morse chains were patented by Borg Warner many years ago - they are extensively used in transmissions, primarily because they are much quieter with less vibration when meshing than roller chains.  The meshing process is much more complex than roller chains - see diagram below - which results in a designed "gap" between the base of the gear and the bottom of the chain teeth.

 

Hope this is helpful

This is what my timing chain looks like, having some wear it looks like it is tighter than yours.

Great pic. Thanks for sharing. I've been looking at it for 10 minutes now...