Disappointing dyno results

No it's a flat tappet. Do I need a smaller carb?
Sounds like you need a new dino man not a smaller carb. The engine will only use as much air flow as it needs. You can put a thousand CFM carburetor on that motor if it needs 600 it's only going to draw 600. Now I'd try a different carburetor sounds like that one was rebuilt screwy.