LA MIA MUSTANG

Hello all, I have a 06 GT with 95k miles and the other day I turned the AC on and noticed white smoke coming out of the hood. I immediately stopped and upon inspection, noticed that the white smoke was coming out of the AC flywheel in the front. This made sense since I was not getting any AC from the vents just hot air. The smoke did not last long, but after this event also noticed that there was now a clicking noise from the top valve cover passenger side. Sounds like the timing chain and wondering if the tensioner failed. Has anyone experience this same noise/issue? And if so, did you keep driving it and could there be any damage to engine? I do not drive hard and have never let the oil get too low (yes burns some oil). Any input is appreciated.