Can't copy and paste from the PDF Bentley Manual, but it says crankshaft must be locked at TDC by inserting a tool through the bell housing, and then the camshafts locked at TDC with another special tool, before the timing chain is removed.
Installation of chain assumes the crankshaft and camshafts are still locked. An illustration shows "camshaft sprockets correctly installed with arrows pointing up and bores centered on tapered holes."
You can download the manual by googling for this:
Bentley_BMW_3-Series_Service_Manual_(e36).pdf
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