I have no idea why, or how, the generator fault causes the excessive advance just know, from when they were knew, that it does and the only cure is replacement. Origially it was a complete unit, stator and rotor, which was MEGGAMEGGA bucks then Honda changed the part number so you could get just the stator reducing it to MEGGA bucks and low and behold when we ordered one(for a customer) and opened the box it contained a rotor as well.
I know that if there is a problem all logic and sense says it ought to be the cdi but i NEVER replaced one of those and here in UK we had a 250 version for our "learner" laws in force at the time so there were 1,000's of those about, strangely never had a generator go on a 250 only the 400 and usually the symptom was a low compression piston-----Hole in top!!!