First thing I would do, if I were a DIY guy, is to make sure I have the correct governor spring. The IPL shows that the correct part number to be 12-089-24, which is listed as NLA. I’ve found many available on the internet.
I moved it to the lower hole. Is that the same as shortening it? If so, it surges, but I don't think it sped up. It is not stretched and hard to stretch. It might be easier to drill a 4th hole in the arm between #2 and #3. I thought about a slightly longer throttle linkage arm.
Glad you got it. I don't use any manuals for any of these engines.The static adjustment was correct. It was the plate that was out. The tech used the wrong engine manual and the correct plate was not shown. With the Forums help, I got the correct manual and adjustment procedure. Thanks again.