Chainbreaker
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Thanks for updating! Its always helpful to others down the road when the OP posts updates and any solutions to the problem. At least by utilizing an electronic governor you eliminated it being an engine/fuel related issued.
I'm assuming you already searched on "governor hunting MEP-003a MEP-002a" for others that encountered and fixed similar hunting issues and you also followed the TM governor adjustment procedure. I recall a while back that someone had a hunting issue and discovered that the governor spring that attaches to shaft where the star adjustment wheel is located was incorrectly attached above the adjuster wheel rather than below it and that was contributing to hunting.
Where are you noticing the oil and how much oil is leaking...a few drops or a puddle?
I'm assuming you already searched on "governor hunting MEP-003a MEP-002a" for others that encountered and fixed similar hunting issues and you also followed the TM governor adjustment procedure. I recall a while back that someone had a hunting issue and discovered that the governor spring that attaches to shaft where the star adjustment wheel is located was incorrectly attached above the adjuster wheel rather than below it and that was contributing to hunting.
Where are you noticing the oil and how much oil is leaking...a few drops or a puddle?