The amount of fuel, the engine temperature and the ideal compression settings are dependent on each other, there is nothing strange or wrong there. So, it sounds like the compression setting is too high to begin with, and when the engine heats up it becomes even higher, this makes the engine run warmer and so on. I believe that is referred to as a run-away situation.

So try to see how the engine reacts if you set it a little leaner, it should usually begin to missfire a little. If not, then you probably have the compression setting too high...

On the ground you can find the optimum (max power) setting by leaning the engine out, then increasing the compression setting to remove the misses, lean it out a little more and so on. At some point there is no gain any more, that would be the maximum power setting which you really shouldn't try to fly the engine at. You want to use a slightly lower compression setting from that position and a also slightly richer needle setting.