Ok so I verified again that the temp switch was grounding one warm and it was. So I tried unplugging the trigger from the start wire, still did the same thing.
So at that point I figured it had to be one of two things. Either my brand new power pack was bad out of the box, or it wasn't quick start and something else cause causing the timing to do that.
So I thought, what if when it's in what I thought was the quick start mode, that's really just the normal mode, and it's stumbling trying to die when I'm seeing the timing drop.
So I started backing the timing off even more. Just about as soon as I touched it it dropped way down and the engine died.
So I decided to use a different approach. I advanced the adjuster on the throttle cable to open the butterflies a little more. Started back up and idle was high of course.
So I started backing the timing down a bit more and eventually it did the same thing, so I advanced throttle adjustment even more, wash rinse and repeat.
I didn't have time to get it as close as I wanted. But now it's definitely getting much better and much closer. It starts up, runs about 1100 till warm, or just a couple seconds if already warm, then drops back to about 750.
It's still surging just a bit, but I think that's just cause I still haven't got the timing back to where it belongs yet. I ran out of time last night but plan on trying again tonight to get it closer, but at this point it's at last running reliably and seems to be heading in the right direction!
So in the end, I don't think it was as I was seeing, I think the idle timing was just set about 10 degrees too high, and carbs closed too much to run reliably, then when it was trying to die and cut out it just made the timing drop as the engine stumbled to stay running.