I do not own a LM-1, I actually use a Tech Edge unit I built years ago. Looking at the LM-1 manual page 12 looks like you can choose your fuel type, maybe E85 is there. You can also program the LM-1 for your fuel type using the values posted above (assuming they are correct).

But I ran across an article somewhere on turbomustangs.com (I cannot find it now) that said for the widebands that only have gasoline AFR readouts, it will still work fine for E85 because all widebands are based on Lambda.

So to answer your question, if you tune to 12.8 using the gasoline AFR readouts when burning E85, you should be in the ball park.

But full disclosure: I have not tried this yet. I have only tuned gasoline burning racecars so far. But from what I have read, the math makes sense. You might want to call Innovative or wait for someone else to chime in.

Here is a link to the LM-1 manual: LM1_MANUAL