Correct, as i demonstrated it whistling and talking the gain was up for testing. The carrier should not be clipped off at all. I use a scope to monitor and set that gain level. In checking i went on ocassion wayyy over 100% to monitor unwanted side effects. At high overload, the 500 regulators actually light to moderate grid voltage .
100% modulation is a slippery slope to be avoided for these reasons. At least the modulation is improved as shown, Woody.