The item circled is not a switch.
It is vent in the distributor cap to prevent the buildup of static electricity or ionised gas inside the cap which tends to decrease the functioning of the distributor.
It is not something that can be moved or adjusted, and does not need to be.
what exactly is the difference in the vented and non vented distributor caps on a slant six? i know one has a small hole in it and the other is solid. is one better than the other?
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