Midlifeflyer is correct about the reason for limiting the flap travel. I don't know how the Penn Yan conversion works, but with Air Plains it is two separate STCs. One is for the engine change only, and does not change the original 2300 lb gross weight. Once that is accomplished, the second STC physically limits the flap travel (in Air Plains' mod it's a stop nut in the flap linkage inside the wing). That increases the MGW of a 172M, N or P to 2550 lb; somewhat lower for earlier models.
We bought both STCs. The engine change was done, but to date we have not installed the flap limiter. So as of now I have 180 hp and 40 degrees of flap, and 2300 lb gross weight. Useful load is only 767 lb, but with the small 40 gallon fuel capacity it's tolerable. I like short fields and I have no friends, so at least for now, the stop nut will remain in my desk drawer.