You're still off by a large amount on CO. I would double check timing and personally not deviate from factory by more than 2 degrees, but i dont believe thays your issue. In my experience if timing gets too far out youll be off on raw hydrocarbons, but you seem good. I dont know where youre at now so ?. If it takes more than that you have a mechanical problem. If everything isn't working correctly, you will have a hard time getting all the readings to be legitimately correct without throwing something else out of whack.
When you fail because of high limits of HC or hydrocarbons, it means there is raw fuel that is being sent out the tailpipe because your engine isn't converting the fuel to energy. The raw fuel actually washes the protective layer of oil off moving parts inside your engine and contributes to engine wear which can lead to premature failure. Some common causes are spark plugs, spark plug wires, misadjusted timing or vacuum leaks.
When you fail because your CO or carbon monoxide is too high, that means the fuel and air ratio is way off and there is evidence of incomplete combustion or burning of the air/fuel mixture. Most of the common causes relate to the carburetor or the fuel delivery system. A CO failure will always be rooted in the carburetor or fuel injection system. CO failures are not fixed with spark plugs.
If there is too much fuel and not enough air, a CO failure is usually seen. When there is too much air and not enough fuel, a HC failure is generally seen.
Copied and Pasted from a book I used years ago. Overly simplified but still the base root to troubleshoot.