The Compensating Timer does not adjust the lamp's level. The earlier Stabilizer did that, by reducing the level to the level that would be maintained once the lamp was moderately warm. In other words, it cut the "peaks" and the "troughs" to the level just below the troughs. Advantage: stable light. Disadvantage: not much light. Exposures could be long.
The Compensating Timer allows the lamp to fluctuate and by monitoring the lamp intensity via the sensor it adjusts the length of a unit of time to supposedly give constant exposure. I used to use one and the audible ticks that marked the end of each unit of time (that you could regard as nominal "seconds") went from slow to fast during even a fairly short exposure, as a result of the tube heating up.
As an aside: I now use an Aristo VCL4500 2-tube VC cold light head. I have noticed that the lamps are much less subject to rise in output with increasing temperature. Maybe (guess) the newer Aristo tubes that are more suitable for VC filters are also more stable.
I have scans of some Zone VI instructions for the Stabilizer and the original head if anyone is interested.
CORRECTION: The Compensating Timer, although it does not constantly adjust the lamp intensity via feedback from the sensor, does have a Lamp intensity control, from Min to Max or something like that. I would suspect that this is where the flickering comes from. Does it flicker when Lamp is set to Max?