Just move the cams back to the correct positions. VIDA instructions, as I recall, have one move the cams forward and then backwards to get the VVT hub loaded -- meaning you can move the cams backwards. Since the belt is not on the crank position will not be changed.

Since this is a potential problem, I suggest that you use ONLY Aisin + Volvo green gasket and nothing else.
You want to use what is known to be the best, this way, if it leaks later, you know it is not the WP or the gasket.

Google "volvo stripped water pump threads" and you will see a few people with same issues.

Once you fix it and done, do NOT install the timing belt etc.
Pressurize the cooling system for any leak first!
This way you can correct it as necessary.

Then once smooth and dry, I will install a green Volvo gasket with an Aisin water pump. Fingers crossed. It looks like you got JB on the threads ... not good. If you have some Acetone. Do this before it dries up. Dampen, not sopping wet, dampen a rag with the Acetone and wipe off any excess JB Weld...

wbrenegade420 wrote: ↑28 Sep 2020, 23:42 Cleaned stud threads with pure acetone. Threads are nice, clean and shiny now!! Thanks again for the warning.

Good news ... hope you got the mating surface while you where at it.

Get the best, flattest JB weld repair and then use Permatex Ultra Gray RTV sealer part number 82194. It will be about impossible to get gasket compression to seal a paper gasket. Let the RTV cure 24 hours after you bolt it up. I wouldn't worry about that bolt. The rigid RTV sealers are used extensiv...

My former 2001 V70 T5 went about 4 days after a timing belt change before it threw a code. The shop said one of the cams was off one tooth. Ran better after that.

Do NOT loosen the three bolts or you risk being more lost than you may or may not be now. I agree with waiting a day or two to see if it throws a code. I had mine one tooth off and it didn’t throw a code on initial start up. It waited for the second start up to light the CEL.