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Increasing the EGR flow doesn't create a lean burn condition. It introduces more inert gas into the engine which dilutes the intake charge (effectively displaces oxygen). The O2 sensor will sense this and compensate by lowering the amount of fuel injected to maintain stoichiometric 14.7:1 fuel ratio. If you're getting misfires you're running too much EGR which will lower your engine's efficiency. You'll have to back it off a bit.
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