back story is recent acquisition 1.7 with a kit to 2.0 and possibily has glitch in distributor causing slight miss periodically at 3000 rpm and above while crusing on the hiway

everything was fine and then out of the blue puttering around town had it in second gear and very loud backfire (first time ever) and then several lesser backfires and then blue gray smoke for maybe 30-45 seconds but no further issues since episode on the drive home. not driven since but drove normally after that episode, so what gives?

why the abnormal exhaust after the back fire?
more evidence of distributor issue?

any help understanding situation would be appreciated.

Blue / grey smoke would be the engine combusting oil, start with a compression test to rule out anything piston/valve related?

my squareback did that 30 years ago.
burnt valve. worn valve guides.

#3 cylinder. classic type 3.

Is this a FI car, or carbs? How are the plugs? Black and sooty? Running rich with a exhaust leak can cause something similar. You said it went back to normal after, running fine. I'd check compression, and rule out the top end.

it is carbs