From the pictures, more smoke is not surprising. The
feed tube and at least part of the burn tunnel are bare metal, and will cool the fire significantly, preventing the extremely high temperatures that are part of the efficient complete combustion. What kind of insulation do you have on the heat riser?
Also, what size is your system? My impression is 6" diameter, but can't be sure. Do you have just one straight run of duct through the mass? If so, you are missing out on some heat capture, which doesn't affect combustion but does affect the amount of heat you get in the space. A 6" system is typically good for 30-35' of run, counting each 90 degree elbow as 5' (not including the transition from the barrel).
Once the core is properly insulated, you will likely see degradation over time, but you will get
experience with use of it and be able to replace the metal parts with refractory at your leisure.