Almost done with disassembly, still need to pull the camshaft and timing chain. Everything looks good, no bend pushrods, no broken springs, valves seating fine, rockers look fine, so have no clue what is causing the tapping. The sound kind of like tong, tong instead of tick. May be bad lifters collapsing? They all slide out the bores easily and I did not feel any ridges. Bottom of the lifters all look fine too. The only thing left to check is the camshaft and the eccentric.
Lots of cleaning to do before I can measure how far up the pistons are sticking out, suppose to be 0.018. I like to go with close chamber RHS iron heads and may be 0.056 gasket like one other member had done.
Also will get a better catch can to avoid all the carbon deposit in the combustion chamber.