Hi James,
I know you already mentioned some of this but I'm going to run stream of consciousness for a bit so bear with me. Yes the floats only need to move a tiny amount to open up the float valve to full. It's a conical seat so more than a mm or so doesn't flow fuel any faster. When you pull the carb out and take the float bowl off the seat should close when the floats are level or parallel to the float bowl sealing gasket. Don't be fooled by the difference between a closed valve and compressing the spring in the valve plunger past the closing point. The two adjustment tabs for the floats are the tab the spring clip for the valve plunger attaches to (sets float height) and the little tab that hits the side of the tower the float pivot goes through (limits float travel). There are three tubes coming out of the Mikuni. One on the bottom of the float bowl is the actual overflow. The two that come out of the sides are the atmospheric vents for the float chamber. The usual problem with the Mikuni is the atmospheric vents get fuel splashed up into them and because Beta made the tubes too long they act like siphons and pee fuel until the tank is empty. Usually this only happens when the bike is parked. Someone must have had that happen with your bike and figured they'd cure it by looping the tubes up over the carb. The easiest way to cure it is to put the tubes back where they belong down the side of the carb and nip a small hole in the tube above the float bowl. Inspect your floats for leaks. That can mess up a perfectly float adjustment. Also make sure the floats aren't rubbing on the bowl gasket. If they are trim the gasket with an X-Acto or similar knife. Billy's adjustments and fixes are really the gold standard and work perfectly unless something weird is going on. One other thing I just thought of, make sure there's nothing making the carb vibrate like a fuel line that is hitting the exhaust or the carb hitting a part of the engine. A vibrating carb is an unhappy carb.
At this point I think you might have tweaked too much at once and should stop and go back to basics. Straighten the float arms. Set the float level. Set the float travel. Check the floats for leaks and rubbing. Let the atmospheric vents go back to the bottom of the carb and nip a hole just under the bend where they come out of the carb. Make sure the carb isn't hitting anything on frame or motor. Report back here what happens.
You and I must be extremely diligent. Ninja Billy is watching!