Engine shows 110 psi in both cylinders (we are at 6300ft so this seems normal). Leak down test passed as well but I forgot the details but it was done by a local guy.
Also, after going out and looking at the sled again, I realized that I never actually removed the belt like I said above. Was thinking about it so much that I thought that I had done it yesterday. What we did do is put the stock pipe and silencer back on instead of the SLP and it ran exactly the same but I paid more attention to the RPMs. 6650 rpm max. It goes straight up to 6650 and then just hits a wall like the ECU has decided that it will not allow it to go further. Kind of like the original poster mentioned.
Tonight we removed the pipe and inserted a video scope up the y-pipe and examined the exhaust values in each cylinder as we moved the cable to the fully closed, position number 1 (mid) and then position 2 (fully open). Both sides are fully in sync as far as we can see and they move smoothly.
Since there are no mechanical issues compression, leakdown, and ignition timing all checking fine, it just seems like the ECU has put it in limp mode (or similar) but there are no codes indicating any problem so it is not possible to understand why it is doing what it is doing.
Having it hit exactly 6650 rpm it seems more computer controlled (ECU) rather than some random mechanical issue as that would allow overshooting or undershooting that RMP. But, that is just a guess.
Does anyone know how their limp mode behaves? Or, any other things to try?
I also read about the large capacitors but we couldn't locate them at first search. By the way we have good battery for the electric start in the sled and it checks fine.