These motors have a harmonic where the motor goes lean at a certain rpm. There is always a horsepower drop associated with the motor going lean. Looking at your dyno report, I strongly suspect operator error…it just does not look like a M20 motor dyno plot. You need to scan the printed version and post…make sure hp/tq/and fuel air ratio are shown.
BTW, the motor is dangerously lean at 14.5 to one.
If you have a broken valve spring I doubt the motor would make 160hp. It is easy enough to check just by pulling the valve cover and moving each rocker arm to check for play. Chuck