1206-Pop and Backfire?

My buddy has a 1206 that when you rev it all the way up it seems to pop and backfire like a gas engine. I have never seen that before so any suggestions would be appreciated. Could it possibly be a bad injector or pump?
 
If valvetrain checks out OK the injection pump may need service. Late or no advance of cam ring will cause fuel to still burn when exhaust valve opens. Doubt it's an injector, that would show up at idle speed too.
 
Don't know what exactly is wrong but this engine was problematic in that the front crank pulley (the dampener) the rubber fails & breaks off cam gear tooth, in extreme failures it breaks camshaft right behind gear, crank gear teeth, bends pushrods, & pistons hit valves. The crank pulley has rubber molded dampener inside, it will deteriorate & crumble, you can see/feel at front edge. If yours checks out ok, good for you, but if it don't get a new one, 701036C93 IH part & expensive, they cause so much damage not good to try a questionable used pulley.
 
I have encountered that in several diesels and have often fixed it by advancing the injection pump a couple degrees
 

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