At TDC, the valve stem is at its highest with the least room. No need to bend anything to get the bushing in. Just lower the piston a little to get more room.

Regarding your deformed nut. Can it be rotated to get the wrench on 2 flats that are not deformed?

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85 300D turbo pristine w 157k when purchased 167,870 July 2025
83 300 D turbo 297K runs great. SOLD!
83 240D 4 spd manual- parted out then junked