You could be rich off the bottom and lean in the middle, and the bike will smoke as it clears out. Going through this now on my brother's Husky 250, rejetting a Keihin carb conversion and RB head mod for the cooler weather. The bike exhibited lean symptoms climbing in the midrange but still smoked as the spooge left in the pipe burned off.
Maybe try a NEW 1.4 - 1.5 bar cap too?
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