".....are the dots on the crank sprocket and cam sprocket supposed to be at 12 o'clock and 6 o'clock, both at 12...."

It really doesn't matter, although most books recommend that the marks be at 6 and 12 to make it easier to insure the chain doesn’t get installed a tooth off.

The cam turns at 1/2 crank speed. In other words if you install the chain with he dots at 6 and 12 and turn the crank 1 complete turn the marks will be at 12 and 12, one more turn and it will be back at 6 and 12.

Turning the engine over 2 revolutions and rechecking the marks at what ever location is the final step prior to reassembly.

Just a side note…..having the marks at 6 and 12 makes the engine ready to fire on # 6 cylinder and at 12 and 12 number 1. As chances are that the crank will get turned during the reassembly, I normally pull # 1 plug put my finger over the hole until I fell compression then rotate then engine until the timing marks line up before I reinstall the intermediate and distributor.