I haven't worked on this engine but according to the manual and with many IP's, you'll need to remove the gear first. Timing belt R&R therefore becomes irrelevant.
I don't have the 29763, but you're just measuring plunger lift so just use the dial indicator. You're zeroing it in step 6 anyway so I assume the tool is more of a handy base for the indicator. If space permits, a depth mic may work too. I would perform this step before removal if all is performing well now as it will give a reference point for install. You already have the most essential and important tool that many try to do without. Just read and understand from start to finish before you begin!
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