If it is turning it in makes it richer and it runs best all the way in that means it needs a richer pilot jet. Try a bigger pilot jet. 34 or 38.
Yes, the PZ20 carburetor has an air screw for the
idle mixture screw, located on the left side of the inlet (when facing the inlet).
I'm not even going to dig into this potato salad too far. Way too many variables at play to even try to troubleshoot this without being there in person.
My 2 cents: Air leaks cause many tuning anomalies like this, where you chase your tail trying to solve multiple running issues. Those changes "fix" one spot, but make others worse.
G2 Reed valve setups are consistently 2 things.
1. Air leak disasters - The number of people that get G2 reed setups and have air leak issues is beyond measure. They are very hard to get to seal properly, and have a lot of places to leak from.
2. Too big in internal volume for these little engines. They create a very very low pressure zone between the carb and intake port, and this often hurts flow. This is why "stuffers" for them exist.
Also, in my own experience and along with the experience of others and a couple of dyno comparisons I have seen, putting a windowed piston and reed valve on these little 2 stroke bike engines doesn't actually increase power, and in some cases reduces it.
My 2 cents, go back to a non-reed piston port setup.
If anybody wants to question what I have to say, all I will respond with ahead of time is this - I'm not trying to sell anybody anything.