The magnet on the flywheel should be close to the COIL when at TDC, ( not sure if that's 12:00)..
Obviously you can see the key in your pic but can't see if it's clocked/inserted in the crank (it could be sheared).
Often, if you put a pry tool between the block (a "safe spot) and flywheel and put pressure up on the flywheel,
you can smack the crank shaft end and the flywheel will pop off. Protect the threads with leaving the nut on, just e even with the top edge of the crank...
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