Read through most of the notes here, and thought I'd add my 2 cents worth.
If I read this right, you replaced the distributor with an electronic one?? And that was before this "no-start" problem? it was for a slugish and performance problem. I saw a few guys mentioned a bad coil, when it heats up, thats true, but I have also seen modules heat up and do the same thing. Im sure if its an electronic distributor it has a module. Did you try the old distributor back in it?? might be sluggish, but it may help u narrow down the issue
I know nothing about a M37, so, what im suggesting would apply to anything with an engine, [Its my trade] as far as wondering if fuel is gettng to the engine, you can isolate that easy, by using [as I cringe] ether or WD40, not sure if these are up draft or down draft carbs, if down draft, just put some fuel down it, [be careful] if still no start, its not a fuel problem..gotta elimnate some things, But after reading all this I am suspicious of the electronic module...if it has one!! lol
sometimes we tend to overthink things, do the basics...Fire, fuel, air, compression..[doubt its compression if it ran before, and that wouldnt cause it to just quit all together] . Didnt notice in the posts if it was checked for Fire at the plugs, use a spark plug tester, or screwdriver. If you have fire then its not a matter of the dist, being turned,,,may not be in right time, but its turning, try to not work on all the functiosn at the same time, pick one area, fire/fuel etc, and eliminate that as an issue,
not sure if anything i said helps, but good luck