The dealer is not correct, your bike is a full stage 2. You have the "203" cams and the big bore kit installed at the factory, you have much more torque than any of the off the shelf stage 1 "96", and my guess just as much as the run of the mill "103's" out there.
Look at my post on deuce torque, there is a dyno run with air fuel ratios, the first run is just with a pipe, the air fuel is way too lean according to dealers and techs, it is said that the "magic air fuel ratio" is 13:1, in the automotive and physics world best combustion is 14.7:1, when they tuned your Deuce, where does the air fuel ratio end up? Just curious.
Also I do think they tune these for max HP and Torque, I do wish I knew where my air fuel ratio is at when I am cruising.