Bike has little to no power.
DTR
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This symptom sounds like the reed switch, but I've never had to derestrict one myself.
Have you got a compression tester to check the engine's health?
The easiest way to derestrict these bikes is to simply get an aftermarket CDI and then you don't have to worry about the reed switch.
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I usually aim för 0,7-0,8mm squish for these engines, I think that would be good for the 3mb head too. You could also use a Athena cylinder head (they have inserts), I've seen those sold separately somewhere before. Check that the profile of the piston dome matches the profile of the squish area in the head.