My first posting new member. I have a 2.3 engine with carb no injection. I had a oil pump lock up and result distributor gear was broken. Overhauled engine and 40 miles later quit running. Pulled distributor and once again gear is stripped of teeth and auxiliary gear same issue. I know there are no teeth on these gears only way to describe.

I don't know if there is a shim or something missing to make sure gears mate the proper way. The book I have does not show shim present. I really need help on this issue can send pictures if needed. This engine is being used in a sand rail mated to a VW transaxle.

 

No, no shims, it wasn't a common issue but it did happen on many Pinto 2.3l engines so I assume Rangers as well, some 2.3l went 500k miles without the issue others had chewed up distributor gears quite often.
Which would make me think it was something specific to the AUX shaft bearings or oil passages in certain blocks.
I would think the AUX shaft is moving, shifting positions, I think you would notice if the distributor bushing were the problem after removal.

If second gear went out then you now have metal flakes in the oil pan so flush it as best you can.
New AUX shaft and Bronze distributor gear(if you can still find one) would be what I would try.