If you are leaving the ignition key on....with the engine OFF....while you are checking the Black with orange trace wire feeding the distributor........you may simply be seeing that the engine shutdown system is being invoked because it has not detected oil pressure within about 10 seconds after the key is turned on.
The engine shutdown system will shut off the current to the distributor if it senses a rise of engine temperature or a loss of oil pressure.
The shutdown system has a 10 second timer that allows you to start the engine despite the fact that there is no oil pressure when cranking is begun. After 10 seconds without an OK (oil sender switch OPENS) that oil pressure is present, the system will interrupt the distributor feed and the engine dies.
You can defeat this by unplugging the oil sender wire to see if THAT is why you lose distributor feed current.
The loss of the distributor feed may not be related to the other problem, and can easily be determined by unplugging the oil sender wire.
On the "flip side" of this, an oil sender wire that has become grounded (or shorted) will keep shutting the engine down (and the oil light burning if the bulb is good) until the short is fixed.
The shutdown system can still shut down the engine even if the oil light, or the overheat light bulbs are defective.
So check that your oil light works on the monitor and then see if your distributor wire stays energized with the oil sender wire unplugged. If it stays energized, that is not part of your original issue.