904 kickdown

The correct base adjustment to start with is when the carb is at full throttle the trans lever should be pushed all the way back. If it hangs in gear too long before it shifts back off the adjustment 1 turn at a time until you get it right.

Also check to make sure when you press the throttle to the floor the carb is going wide open
reread this; it doesn't have to be trial and error.
Carb at WOT, Throttle lever on trans, all the way back. Lock them together. If this is not possible, then you have wrong ratio levers. Do not put much power into the trans until you get this working right, or you will fry the normal wear parts.
However, the no downshift troubles me. It may be a faulty governor, a separate problem, ot it is telling the truth that the throttle pressure is very low.