If timing is correct then we need to suspect a worn camshaft. This will not show up in a compression test because the valve is able seal but it is not able to lift the valve enough to allow proper air flow which causes the air fuel mixture to back up in the intake and then ignites.
Here is a guide that talks more about this:
https://www.2carpros.com/articles/engine-backfires-while-running
Have you taken a running compression test? Basically the same thing as a compression check but you let the engine start and run for a few seconds.
The real way to confirm a cam lobe being worn is to measure the lift. I attached the spec. You should have just short of a half inch of lift on this engine so I would suggest we measure it if we find low running compression.
Let me know if you have questions. Thanks
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Saturday, April 25th, 2020 AT 4:02 PM