It can be done in car. I did it on mine about 13 years ago. Removing the engine is a pain if you don't have to do it. If you do take the engine out, carefully inspect the flex plate for any cracks. If you find any, replace it to avoid this:
FTC4606 doesn't anyone ever replace them?
As the timing cover has to come off, you might want to check the oil pump. Gears are available on eBay.
OIL Pump Gears Range Rover P38A Discovery II | eBay
Alternatively, get a complete new timing cover with oil pump.
The recommendation is to also replace the cam followers/lifters at the same time.
See also this: RPi Engineering - V8 Engines
Re the cam, you might consider a different profile depending on your planned use for the vehicle.
On the last engine work we did on mine, we fitted Cometic head gaskets ($400) and ARP head studs ($305). See My thanks to Scouse...
BTW, did you know the bonnet will go vertical on a P38A? Mine:
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