Re: 1996 5.7 timing light jumps around
If the timing light is steady in base timing mode then "Not normal" would be my first blush assessment of what happens when you remove the jumper wire.
First, be sure you are following the procedure exactly, meaning is removing the jumper wire while running ok, that kind of thing.
The Tbolt V has some sensors and modules that work together to advance or retard the timing based on rpm and conditions. For example, it has a spark knock module that allows the spark to advance more up until knock is detected. If a module like that is faulty then the TBolt V computer could get confused. I'm not saying that is the problem, I'm just sayin' that in my opinion something needs attention and you should test each ignition component per the manual if possible.