Thanks to this thread:
viewtopic.php?f=108&t=1472
I was able to solve the issue. The jet block or mid block o-ring was bad.
My final jetting is now as follows:
+/-2200'
27 Celsius/81 Fahrenheit (today)
19% humidity
Slide #7
Main: 168
Needle N82M #2 From Top
Pilot: 42 - 1-3/8 turn out
The motor setup is OEM Cyl, Head, Crank, PWK39, 10mm Carb Spacer, VForce 3 Reeds, FMF Gnarly Pipe, Powercore Silencer, BR8EIX plug, and timing set to OEM 17 deg. BTDC @ 6000 RPM, 15/47 gearing.
With this jetting, the idle is good there is not any surging and the idle settles in immediately, no hanging. The bike has great power and pulls cleanly from the basement to the roof. The bike did not get over 172 Fahrenheit, per the Trail Tech TTO coolant gauge. Hit 8800 RPM peak on the TTO gauge in lower gear most likely and a long 5th gear pull hit 8000 rpm.
I'm happy and the bike seems happy too.