Ethanol mixed gasoline runs (proportionately by volume) leaner than straight gas.
The air/fuel ratio, designated by your ECM, is only valid during steady state throttle settings (cruising) while in closed loop. When not being adjusted by the O2 sensors, during steady state conditions, your injectors are driven by a preset program. They are preset parameters that do not rely on 02 sensor input. A vehicle designed to run on straight gasoline will run dangerously lean during this time if it is running more than 10% ethanol. Once the O2 sensors take over, the ECM will try to reach the designated A/F ratio by increasing cycle time on the injectors. A/F ratios of up to 14.8:1 are safe, but the optimal power can be reached with a ratio of 12.9 to 13.2 to 1.
In other words, the problem is not with the A/F ratio setting, it is in how the ECM controls(or doesn't) the system during on/off throttle operation.
JMTC