Does it just fall flat, or does it stutter and stumble when you get to that range (1/8 to 1/4 open)?
The new Dynojet needles may be off. I would try the stock needles, and then add a shim, then 2, and test again. It's possible they are too lean or too rich for your particular conditions. If you can get a good idle at the correct speed within the 2 to 3 1/2 turns out on the idle mixture screws I would say the pilot jet is correct. I would also sync the carbs.
I was tuning a small 2-stroke street bike that I recently purchased, and it would stumble terribly as I opened the throttle 1/8 to 1/4. It would idle and pull away fine, and pull hard at WOT, but in between it was a mess. I adjusted the clip on the needle up and down all the way without a significant improvement. I decided to get a leaner jet needle ("needle") and it helped, but even at the leanest setting it was still rich. I ended-up getting a leaner needle jet as well - this particular carb (Mikuni flatslide) as a removable needle jet that works with the jet needle to regulate the mid-throttle mixture.
BTW, a Mikuni (Sudco) tech I spoke with said that changing the float height does not effect the mixture - which I always believed it did.
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