I didn't say anything about your lung capacity.
Let me just point out that for his 80 kg Miguelon only had 7.8 liters while Bernard Hinault had 7.5 liters for his 65 or 66 kg.
I don't know much about lung capacity, it's not an important factor in cycling.
I had mine measured only twice, once in high school, when I was 16 or 17 y.o., it was one of the lowest in my class : 4.3 liters.
Later at age 43 it had jumped to 5.6 liters. I have to assume that competitive cycling accounted for that huge improvement (weight around 60 kg).
In between, at age 26, I happened to be visiting a lab and they had a machine to measure maximum air exchange over 10 seconds. Presumably everybody has different machines to assess forced air flow, so that absolute values probably don't mean much. I did 210 liters/min and the Dr in charge who had worked with pro teams in football had never seen more than 140 liters/min on that particular test.
A funny thing is that I repeated the same test at age 43 (when also taking a stress test) and the nurse seemed so annoyed that a little thing like me could do about 200 l/min on her machine that she assumed the measurement was wrong

(she had me repeat the test making sure the mask was well positioned, with no possible leak anywhere, it made me laugh)
Anyway, as you say, the cardiac output (in liters/min or more importantly in oxygen content/min) really is what is important and tightly correlated with power output.
Now about donkeys and race horse.
Let's take a guy with a VO2 max of say 72 ml/mn.kg.
Lots of guys have such a value of VO2 max - or even more - on this forum.
Still, in a pro cycling environment they would be called donkeys (even though they would be the best on their street)
Increase their VO2 max by 15%, now they jump to 83 ml/mn.kg.
In a non-EPO world those guys become potential GT winners, ie. good race horses. Several GT winners, pre-EPO were aroung 80 ml/mn.kg, Hampsten (79) for example.
So yes, definitely, EPO can transform and has occasionally transformed donkeys in race horses ( as long as the subject fulfils the other requirements for top performance)