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So was it the circlip issue?

Be sure to post some pics, love to see the finished product.

Chrome bores require a specific set of rings, which complicates economy production. If not properly done can deplate and kill an engine. A lot of 2 stroke hand held stuff ran chrome bores and were very durable, but cost a bit more than their aluminum bore counterparts. A properly executed iron or steel bore will just about run for ever. I have delt with nikasil in the past in commercial engines and am no fan for sure! Ive only seen one GY6 cylinder of the type and it was about twice the cost of the traditional bore cylinder. Remember the old Briggs cool bore lawnmower engine? Piston ran in an aluminum bore. If the air filter was maintained keeping the bore clean they just about ran forever. Course they were governed to 3600rpm. Still running one on my ancient 88 Snapper mower.

Being a coastal area there is non ethanol fuel available. Its is a bit more costly and only at certain locations. I run basically what is at the pumps. I agree with the use of Seafoam. Been using it in my hand held 2 stroke stuff as it makes the fuel less hard on the diaphrams in the carbs.

One can always remove the ethanol from the fuel, but that leaves questions of the remaining fuels octane rating.

Both my wife and I were marveling at the fuel mileage our scoots were getting. Been riding a while on about half a tank. Figured Id better have a look in the tank. We were both on fumes!
Had a look today at the sending units. Both were bound and took a good amount of effort to move. Electrically they were fine, just stuck.
They had worked perfectly on the first few tanks.

The fix was to move the press nut retaining the shaft of the float arm. The plastic body of the unit had apparently swollen Im guessing from the ethanol in our fuel, basically locking the float arm. I simply pried the nut up the shaft a bit and the arm flopped around freely again and the gauge worked as normal. You have to be careful not to loosen it too much or the electrical contact that rides the resistance grid may loose contact. Glad it was this easy.

Moral of the story is with these undampened type gauges look for needle movement(carefully) while riding. If you don't see any your unit may be stuck.

Also check the valve clearances, could have changed after the initial start up. I just recently installed what sounds like the same kit. Came with an 85 main which I installed. It ran like the hounds of hell from the get go. I was amazed! I agree on back pressures. I put a shorty muffler on a 200cc M/C to replace the expensive stock unit. From the get go it was boggy and just ran terrible. A Chore Boy cleaning pad stuffed down and safety wired into the muffler did the trick and it ran like it always did. Did you do the install?