Timing is not adjustable. The MPEM manages it. Have you verified spark? You'd have to pull the carbs to check the reeds, they are under the carb to block adapters. Even with bad reeds, it would at least fire.
I'm still leaning to either the magneto being the wrong part, or installed wrong, or the sensor not working correctly. Very easy to mis-install. Same thing happened to me a few years ago, I'd crank and crank and every now and then it would fire, but then it would back fire so bad it collapsed the rubber hose in the exhaust. Turned out to be I used a 98 magneto vs. a 99+.
On the XP you can actually swap the magneto without removing the pipe or engine... support the engine from above, remove oil pump, remove front mount. remove 20 10mm bolts on mangeto cover. Don't forget the plastic oil pump drive adapter either when you reinstall! I had to redo everything when I found that in the hull!
you can post a video?