I had a K&N on my 350 but was strongly advised to get a 'real' filter that actually filters the dirt out.
Upon inspection of the K&N it was very dirty on the inside & you could see straight through it. :-/
Perhaps the bowl in the carby is over filling or the other side, not filling fast enough to keep up at
WOT (Wide Open Throttle)??
My 350 was doing a similar thing, but, it was overfilling & flooding.
Sorry mate, that's all I can think of.
Maybe some of the others can offer more or better advice?
Good luck.