A (very) fine point of traditional ABC/AAC/ABN engines is that the head protrudes down into the cylinder bore, and is a snug, piston-like fit into that bore. The head being hottest (and aluminum), it will expand more than the cylinder, and this forces the cylinder bore to stay round. It also stretches the bore at the top, which allows for that tight "pinch" in the last 1/4" of stroke. If the head is too loose, or the cylinder taper a bit much, then the engine will tend to flame-out, usually as it cools in the down-strokes of the RWO, Hourglass, OH8, etc.
This has been a problem with new ABC/AAC/ABN engines with good "pinch", almost always cured with a more running, a head with a tighter fit in the cylinder, or retaining more heat in the head. The Brodak .40 is an engine that frequently has this "problem", and it can usually be solved by reducing the cooling on the head. Therefore, I think the coating/probably reduces cooling through the head, making it expand more at running temp, thus stretching the top of the cylinder more.
The one thing I can't explain is why some newer designs have the head sitting on top the cylinder, not sticking down into it, and thus not keeping the cylinder round. I've used only two of this sort, the Magnum XLS .36, and the ST G.51 (which is not A/?/? of course...sad, that!). So why do they run so
very, very well? One of my first concerns (as a machinist for 35 years), is how much is this "2 mills"? It should probably be "mils", but most commonly (plastic sheet or film), one mil is .001". If the head is already a good fit, and you put .001" (on each side, it seems?), then it probably wouldn't fit into the cylinder without a very big hammer. If he means 2 millionths, or even 2 tenths (.0002"), then it may still fit, and I think that's the intended definition. Recent issue RO-Jetts have black cylinder heads, and quite a bit of "pinch", OBTW.

Steve