If adding manifold vacuum to the advance at idle causes you to loose control of idle speed then move it over to a ported source instead. The ONLY difference between ported and manifold vacuum to the advance is that ported will NOT add timing at idle and coasting. It does EXACTLY the same thing otherwise providing FULL manifold vacuum to the advance right off idle, and light load/normal driving scenarios.
Well thought out engine builds do NOT want, need, like, or respond well to butt-tons of timing anyplace, especially at idle speed.
For most engines I get involved with here I shoot for 10-12 initial, 10-11 mechanical (20-21 at the crank) and 10-15 from the vacuum unit, usually using a well located ported source, not manifold vacuum. This provides around 30-34 total mechanical and mid to high 40's at light throttle cruising.
Of course with that said those numbers are for efficient engines with optimum compression, tight quench, efficient combustion chambers and well chosen camshafts for the application. Engine with a lot of quench, for example, or too much cam (overlap) may want quite a bit more timing to be happy.
I do NOT like use or recommend light distributor springs or super-quick timing curves for most of these engines, unless it falls into the category mentioned at the end of the last paragraph. At that point you are just "crutching" things as inefficient engines like, want, need and respond well to a LOT of timing and fuel.
Anyhow, the timing should start advancing right off idle or 900-1000rpm's and all in by 2800-3200rpm's is early enough.
Some folks are still stuck-in-the-60's and believe all the crap you read on the Forums and install light springs with super quick timing curves which cause nothing but issues with idle tuning as more times than not some of the curve is in at idle speed. Not necessarily the case here but needs to be mentioned as lots of folks with troubled engine combos will read these threads.
Anyhow, your fuel mileage is WAY off the mark for the combination of parts. Not sure exactly why since the A/F ratios aren't horrible, but for sure some additional tuning is needed here to get it where it needs to be.......Cliff