It all depends where factory settings are.
When I say flush with housing, the screw is flush with the brass housing it's in. Meaning, right at the top as in this picture.
So if you need to go factory settings you will need to screw in the HSN until it cannot anymore (don't over tighten, only...
Ah ok.
My engine is so unknown, I don't know what factory settings are. LOL!
I started off with the HSN flush with the housing. Leaned it, found the misfiring issue. Went back a half a turn it was fine.
I had something similar this weekend.
I leaned out the HSN and it started doing what you describe. Almost as if the car is backfiring. Then I richened the mixture again and it was fine and I was able to hit WOT.
I need to watch some videos on tuning. Maybe my LSN and HSN are out of whack.