Ideal d-wave altermagnets with nearly orthogonal flat Fermi surfaces enable complete spin-channel separation and 100% theoretical charge–spin conversion efficiency (CSE). The metallic altermagnet KV₂Se₂O exemplifies this, but realistic samples host residual elliptical Fermi pockets that enhance charge conductivity while suppressing spin conductivity, drastically reducing CSE. Here we show that in-plane equibiaxial tensile strain systematically eliminates these parasitic pockets, restoring the flat-band geometry. Our first-principles calculations reveal that CSE increases monotonically with strain, reaching a record ∼96% at 4% strain. An effective tight-binding model confirms that pocket suppression, governed by reduced next-nearest-neighbor hoppings, is the dominant mechanism. We further identify an unconventional out-of-plane spin current component with CSE ∼55% at optimal orientations, enabling field-free perpendicular magnetization switching. Moreover, the same strain-driven removal of parasitic pockets yields giant TMR enhancement in KV₂Se₂O-based magnetic tunnel junctions, from 10⁵% to 10⁹%, and the giant TMR persists over a wide energy window near the Fermi level. These findings establish strain engineering as a clean, widely applicable strategy to maximize CSE and magnetoresistance in d-wave altermagnets, and provide predictive descriptors for screening high-efficiency spintronic materials.