I am sure it was correct when I set it, but that’s not to say it is still correct. I think that is a good next step. I might take the flywheel off again too to clean off the points. Although I really don’t want to untorque it haha. 

Another thought at this point is try the ignition from the RT.

I've never seen a points ignition act "rich" like that except with a bad condenser.  You might try actually bolting the condensor case to a solid engine ground.  The whole "hanging by a wire" thing still makes me wonder.  May not be the problem but also could be.

I have seen CDI's that spark great yet refuse to rev and sound and sound like engine is flooding out...  but it's the ignition. 

Thanks for the advice and ideas MarkT. I’ll check timing next and bolt the condenser down. Hopefully I don’t have to go to the rt ignition but I have thought about it.

I'd better Edit to say just my opinion & not knocking anyone else's. Just annoying its not pulling wheelies down the street by now.

I'm likely repeating myself.
So you fitted a round jet straight into the needle jet still using the brass washer?.
I replayed the video & nothing wrong with spark.
Might sound a bit erratic but its not & just rich mixture giving a sort of erratic sounding spark.
So why the hell is it over-rich.
Can only be something 'very' wrong in the carb, or something 'very' blocked in the spark arrestor.
It cleans up just as it runs out of fuel. Exhaust sounds too loud to be 'so' restricted as not to rev, so don't think that's a possibility for now.
No odd ball slide fitted that ends up back to front? hence no cutaway looking in from the airfilter side".
Slide needle in place.
Try a known good carb.
Lets have a video holding it wide open not just playing up & down at low to medium revs.
To be 'that rich' there something very odd.
Is there something blocking the air intake to the filter. Rag left in there.
It cleans up as fuel runs dry so when turned on it should remain clean providing the carb is ok, but i gather it goes straight back to full rich.
Fuel has to go up past the slide needle--well most of it.
Drop the needle in with no clip & it should block the fuel from getting past except for pilot jet.
Then see if it runs but theoretically shouldn't except on choke--& maybe try to idle.
I 'did' mean fit the slide in before starting, but with needle down the hole & going nowhere.
I guess keep the exhaust in mind but i've wiped that thought for now.
Is there a prize for the winner. Don't think it's going to be me.
Wish i was there to investigate.
Fixed by lunchtime--just not sure which lunch time.

Haha fixed by Christmas dinner at this point ha ha. Once again thank you for all the ideas of things to try. I am convinced of getting to the bottom of this I just need a day dedicated to trying things out instead of half hours at a time. Everything in the carb is at least installed and close to how it should be as I've had it on and off many times in the past few weeks to check. Could it be something with the choke circuit? Air box boot is off so it is not restricted at all there. Needle is indeed installed and I do not have a known good carb. Going to sort through ignition system again and put in the leaner jet as well. I find it odd though that it is such as consistent problem. Nothing I do really seems to affect it, at least yet.

Ok one more idiotic thought of mine.
Has someone secretly filled the trans full of fuel & it's getting sucked through the crank seal, forced through by the clutch spinning.
Only reason i came up with 'that' & not really relevant as talking 4 strokes, but back in the day of Yamy 4 stroke 3 wheelers we had a few where the carb developed a fault & flooded back into the airbox overnight & emptied the tank into the crankcase via the crank breather which recycled into the airbox. Plus it would puddle in the box under the aircleaner. Pull the dipstick & she was way up high depending on how much fuel was in the tank.
Then it started breathing fuel fumes & running super rich with a rich idle you couldn't adjust out.
After the first one it was a simple diagnosis. Change the oil & drain the filter box plus squeeze out the filter.
Can't remember now but probably changed the breather routing or left the airbox drain open underneath.
Breather was routed so it breathed inside the filter i think.
Plus fixed the carb of course!!.




Ok i'll pull my head in.

Hoping my crank seals arent leaking that bad! But I'll check my oil anyway. Nothing is out of the question. I do think I have changed the oil on this bike more times than miles I've put on.

Oil is fine, no gas smell and my timing is almost exactly 3.2mm btdc

another video, this one I hold it wide open for most of it. Just took this after checking timing and cleaning points. Haven’t bolted the condenser down yet, really should but I need a bolt and haven’t gone to the store. I did add another alligator clip to it though so I am confident it is grounded. On the idea of oil though I did think about maybe my seal is leaking and pulling oil. Just because I changed the seal doesn’t mean I did it right lol. still more to try but out of time for today. 

youtube.com/shorts/zgOfQgr-oQA?si=6TfezPxgEQBbEmRr

Can you do a quick explanation on how you are setting the timing also is your spare carb for a DT3?