Will the contacts from the SB-20 on the Isolette ii "cold shoe" cause any issues to the flash?
Welcome to Apug!
Yes, the contacts of your flash will cause trouble.
The all-metal cold shoe will shorten the trigger circuit of your flash.
As the contacts at the hot-foot of the flash are in parallel to its PC contacts.
Put isolating tape on the base of the camera cold-shoe.
Or use an adapting hot-shoe with pc-socket.
The Isolette II was delivered with two different shutters, both are X-synchronized/have X-setting.
With other folders with PC socket check whether the camera is x-synchronized at all:
Open the aperture, the back door, dim the light and release the shutter looking through the lens from behind.
In X-synchronisation you should see the flash light unobstructed by any shutter leaves.