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Yes it can - but you can do it faster and do a better job of it with the engine out of the car. It takes about an hour to take the hood off and pull the motor. and this way you are sure the pan to cover seal is good, plus you can paint everything if needed.
I've done 2 cam swaps in my 81, never had the engine out, but like the guys said above...mark the underside of your hood for hinge alignment and remove the hood, the radiator has to come out ofcourse. For the A/C equipped cars you can move the top of the condensor 2-4 inches towards the front of the car, you don't even have to disconnect any A/C lines, and you will have just enough room to change out the cam.
I've probably had 20 different motors in and out of different year C-2 and C-3 Vettes and I've never removed the hood. Just added time to R&R the hood.
The cam is just like Ganey said. I actually went to a true two piece aluminum timing cover to make faster cam changes. The Cloyes 2 piece is a **** poor item so don't buy it. I have Comp Cams timing cover on one of my motors