I had to pause further troubleshooting of the issue for over a year and finally got some time to look into it again.
I don't believe I have an issue with the gas line but it's possible that the pump could be faulty. I tested it out with a gas tank propped and ensuring that neither gas line nor breather line is bent.
I discovered that the power is cut off at different RPMs depending on what gear is on. On 1st gear, it cuts power at ~5k, on 2nd ~4.5k, on 3rd ~4k, on 4th ~3.5k. To me, it seems like the ECU tries to limit the speed.
I doubt it has anything to do with the speed sensor as I never had it connected to get the speed reading.
Since the issue is similar to how bike may behave when one of the Throttle Position sensors is faulty, I remeasured the voltage of both TP and STP sensors. Both sensors passed continuity check b/w sensor's coupler and the terminal sockets. Both output voltages within the spec range. Though, one observation was puzzling to me. Both sensors give 0L output when the output voltage reaches 2.0v. It's a very short drop at precisely 2.0v and then the voltage reading returns back once it passes 2.0v. At first, I observed it on the TP sensor and thought I found the culprit but then I got the same behavior with the STP sensor. While it's possible both sensors could be faulty, I find it unlikely. Also, I replaced the STP sensor when I initially started troubleshooting this issue.
Here's is an example of multimeter reading in slo-mo.
Wondering what other sensors might produce such behavior?
I thought of crankshaft sensor but that one tells ECU when to fire the spark and so far can't connect it to the power cut off. Besides, if the sparks were misfiring, the bike would sound differently with potentially small explosions due to either late or early firing.