I didn't know you could use ATF for damper oil. I had heard that 20wt would work and I suspect there is Zenith-Stromberg damper oil in a small container for a ridiculous price also.
I would add that it might be a good exercise to drain the current oil and check how it works to make sure there is no binding anywhere. I might also check your throttles. IIRC, there are two - a main throttle and a secondary one for the crossover pipes. If your pipes were taken off, the secondaries might be taken out and the holes plugged (I don't remember exactly what was done for that). Anyway, it might be a good idea that you're getting WOT and there's nothing that would "get in the way" like a butterfly closing when it's not supposed to. Having said that, it sounds like your problem is probably the wrong oil in the dampers.
Just an FYI: it may be useless information but for some reason, I feel compelled to say that you don't NEED oil in the dampers for the carbs to work. I never used any in the SUs for my MG Midget race car. That is surely less appropriate for a street car that is not usually wide open most of the time, but who knows, it might be an interesting thing to try.