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I would have the holes welded up and carefully ground/filed down. Wrap looks like shyte to me for the first few thousand miles and thereafter also.
Fill the holes with silicone and see if that stops the popping and buy new headers. The wrap looks like shyte after a few thousand miles and it will eventually ruin the pipes.
What's claimed for wrap as well as ceramic coatings like Jet Hot is they keep the exhaust temp higher which leads to faster scavenging.
Smaller diameter would increase the velocity but reduce to volume.