Just been skim reading the past couple of pages and things sound OK to me. You're getting a squish sound every 2 crank turns (suck, squeeze, bang, blow - 4 stroke engine), which is compression. I did say remove the spark plugs if you want the engine to turn over easier, but the squishing confirms you've not got any bent valves and the fact it is turning over means it's not seized either
Can you not see the conrods from the bottom without taking the oil pump / balancer / girdle plate thingy off? If you can, look for discolouration. An overheated big end bearing would make the rod turn a bluish colour. If they all look the same colour (brown from oil staining or gunmetal), move on.
What I would do is carry on as you are checking the timing and if it's good, just start it mate and see what happens. What was the VCDS error again? "Cam / crank correlation - set point not reached" by any chance? That would definitely indicate a chain related issue.