OK, I'm at 14.2watts diss.
Congrats, you're at 100% plate dissipation for a 6V6.
Really for a 6V6GT
A, but unless you have a tube from the 50's or earlier, it probably carries a 14w plate dissipation rating. And even if you use a 6V6 old enough to really have had a 12w plate dissipation rating, it will stand this fine for many-years. Unless the normally-gray plate surface is glowing cherry red, you're fine. The tube will actually dissipate less heat in this circuit when you drive it as hard as possible.
... what are my chances that the 2 watt dissipation is causing my (distortion) I'm talking about?
The amp plays fantastic at bass 3, vol. 6 or 7 any higher on either and ratty bass distortion starts.
Probably zero chance.
You've already said the amp sounds fine with bass and/or volume down. That pretty much rules out a bias issue (usually, very-wrong bias would cause distortion at all signal levels).
You've identified blocking distortion as a possible culprit. Blocking is 100% about applying a drive signal whose peak voltage exceeds the absolute value of the bias voltage, causing grid current in the output tube, which charges up a too-big coupling cap, shifting bias (but only while the too-big drive signal exists) and eventually recovering when the drive signal is removed. You can keep trimming coupling caps downward, unless they make the amp too bright and/or keep the bass control low and/or don't turn the amp up so high.
Reducing coupling cap value is all about reduce the RC time constant of the cap and resistance to ground, shortening the recovery period after grid-shift due to too big drive signal. You could also reduce the value of the resistance to ground, but that will also reduce the effective voltage gain of the prior stage (somewhat attacking the problem 2 ways).
f course, maybe you don't like the amp's distorted sound as much as you'd expected (that's happened to me a bunch). Or maybe you don't like the sound of that speaker (happened to me, too). You could try plugging a different speaker into the amp and seeing what it sounds like (my stock Epi Valve Jr sounds amazingly better just by unhooking the internal speaker and plugging the amp into a 2x12 with a pair of Scumback speakers).
Screen 354v
Plate 335v
mA 44mA
...
Why is the plate voltage so low....? Should be a few volts less than the B+, it's 20 volts...?
The resistance between the OT's plate and CT (amp off of course) is 640 ohms (single ended OT)
With such small resistance why the big voltage drop on the tubes plate...?
Voltage (Drop) = Resistance x
Current. You have 750Ω resistance to the screen, and only 640Ω through the OT to the plate. But your calculated screen current earlier was only ~2mA while your plate current is 44mA. 750Ω * 2mA = 1.5v, while 640Ω * 44mA = 28v.
And this is typical of most guitar amps because the idle screen current is often very much lower than idle plate current.