Once the timing plate mark has been correctly adjusted to 25 deg, full throttle and check that the cam is not over actuating hard agains the white roller. Once the while roller is at the high side of the cam you need to be able to spin the roller with your fingers. If too tight hold the throttle to max, release the nut that holds the vertical rod in place, hold the pawl plate fully down, and raise the roller body extreme as shown with finger till lightly restes on the cam, once there secure the nut tight.
If the cam over actuates the roller will end wearing all the plastic bits of the throttle system specially when going back and forth, say from 3/4 to full grip on constant basis. Check the pics for clarification...
All portable Tohatsu motors with props factory delivered with are way over proped, a 8.5 pitch should increase wot rpm much better, but would be ideal to count with an induction tach to check achieved max wot revs increase to check if at least runs at middle wot rpm range which is 4500 rpm. The wot rpm range for that motor is : 5200-5800.
The hesitation issue, bogging whatever the motor is experiencing is at 1/2 to full grip ? if so, this issue could be due to the fuel line is sucking air at higher rpm and motor behaving as such. What is the condition of both connector's o'rings, are dried, worn ? Can you test said motor with another fuel line swapped from a motor that works with 0 issues running strong to discard it's a fuel line related issue ?
Happy Boating