Sound to me that that coil - is grounded even when the points are open. A common reason is the insulation is worn on the wire where the wire from coil - goes into the distributor. Take the wire off coil - and open the points then use an ohm meter to see if the end of this wire is still grounded to the distributor breaker plate. May not give the answer but it will be a start at least.
I file all points before I install them to be sure they will pass electricity.
IMO putting a EI into distributor that is smoking is bad practice.
TRUE GRIT
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