As of the latest update (SU12) the issue with the start mode behavior (blue arrow) is resolved.
However the readings of the MLI are still inaccurately modeled in FLO mode.
Cabri G2 Flight Manual for reference:
This is the real life behavior as density altitude increases:
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In PWR mode the 100% mark on the MLI corresponds to 119 kW (160 hp) of power for the 5 minute takeoff rating (limited by the stress on the gearbox). - Should only be used below 30 kt IAS.
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The lower end of the upper red arc indicates the maximum amount of power the engine can produce.
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The lower end of the yellow arc corresponds to the maximum continuous power rating for the gearbox of 108 kW (145 hp).
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When density altitude increases, the maximum engine power output reduces, the red arc travels down toward the 100% mark. When it first reaches the 100% mark, maximum engine output is equal to 119 kW (160 hp).
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Now the mode changes from PWR to FLO mode, as the max. power output is no longer limited by the max. gearbox power rating.
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For further increase in density altitude in FLO mode, the 100% mark now represents the maximum possible engine power output for the current density altitude.
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The yellow arc now starts to move up until the maximum possible engine output is equal to 108 kW (145 hp) - The part of the yellow arc above 100% is colored red.
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When all of the yellow arc is above 100% it is now impossible to over torque the gearbox.
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When in FLO mode, power can be demanded from the engine until the power indicator hits 100%, when you then continue to pull collective, the indication will stay at 100% and the rotor RPM will start to decay. - More power demanded than power available.
Here are some pictures from the real MLI at different altitudes:
MLI at sea level in PWR mode:
MLI at 4540 ft in FLO mode: