I'd take a 2 step try to set that stuff right.

Crank it, and let it idle. See if the idle drops as it warms up. High speed idle won't hurt it if no load.

If it doesn't drop, back off on the idle stop screw on the butterfly and see if the idle drops. Back it all the way until it no longer contacts the idle butterfly arm unless the engine stalls out. If it still idles too high, then start closing the idle bypass screw until the idle drops into the desired range.

I think the idle butterfly opening of 1/8" is too wide, and may be enough for the idle speed noted.

After you do the above, you should reset the idle stop screw to the proper butterfly opening (I'd consult the fsm) and then adjust the base idle speed with the bypass screw (probably between 600 and 750rpms) with the isc disabled, then readjust the tps sensor.