Not sure where you got 3.340" from? Is it a generic dimension for the 30-06 in general?
The 3.210" COL dimension for the 165 SST listed in the Hornady manual is specific to that particular bullet. It should be safe in any 30-06 rifle with a SAAMI-spec chamber.
Since each bullet type has its own unique profile, the manufacturer's recommended COL will be different from bullet to bullet.
That's because the different shape puts the point where each bullet will touch the lands in a different spot in relation to the bullet tip.
As an example, look at the recommended COL for the 168gr A-Max on the same page. It's 3.220", not 3.210". That's because the longer, sleeker tip of the A-Max puts the .30-cal ogive further back on the bullet in relation to the tip.
Now look at a heavy, more blunt tip bullet. The COL is probably shorter. The Sierra manual lists a 150 gr round nose load for the 30-06 at 3.000" COL, while the 150 gr Match King load for the same calibre calls for 3.250" COL.
Again, same bullet weight, very different profile.
Also, a different bullet shape means that the lands may "move" slightly with a different bullet. You should re-check your point of contact when you switch to a different type of bullet. Don't assume it's the same. It might not be much of a difference in some cases.
When you built your dummy round, does your CBTO dimension of 2.632" leave the bullet touching the lands, or does 2.632" include seating the bullet 0.020" deeper to give you 0.020" jump?
If you measured to the lands in YOUR rifle using the Overall Length Tool, then seated your bullet 0.020" deeper, you should be ok as a starting point.
If you had loaded to the book value of 3.210" COL, the result should also be safe in your rifle based on the numbers you've provided. You would have at least 0.053" jump to the lands, or as much as 0.073" jump depending on the answer to my question about the size of your dummy round.
What the OAL length tool (and measuring to the ogive in general) does, is give you the ability to safely build your ammunition to a custom length for best performance in YOUR specific rifle, rather than relying on a COL dimension that will chamber in any rifle.
The downside of that is you can't safely give your buddy with a different 30-06 a couple of your custom-length handloads to try in his rifle. They might be fine, or they could be jammed into the lands and potentially cause an unsafe condition.