What did the plugs look like? You might have hurt the engine.
Can't speak for the red light on the LT8, been a while since I messed with one - but if it's a sensor warning light then it would pay to check your sensors, in particular coolant temp sensor and intake temp sensor. If they are not giving a reading (dead, or come unplugged/unearthed) or are giving a poor reading (faulty) then that will casue you to run rich which will make it misfire.... and as it gets higher in the revs with more air & more engine speed it might be burning a bit easier hence 'cleaning up'
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