"Adaptation is not evolution."
That's exactly where you're incorrect.
Evolution is a series of adaptations that occur in a species as their environment creates demands that they are capable of adapting to.
"You can breed fruit flies for millions of generations and all you're going to get are various breeds of fruit flies for which the genetic information is already encoded."
Are you expecting an alligator to pop out?
Some sharks haven't evolved (as indicated by fossil record) for hundreds of millions of years. Though their lifespan is much longer than a fruit fly, that a significant change has not occurred in flies or sharks basically indicates nothing except that their environment did not create such demand that change was necessary and possible, otherwise mutations would create survival superiority among specific flies that might -possibly- have resulted in a new species after an incredibly long period of time. There's no guarantee, because a species might not need to change so drastically that they no longer mate with their ancestry.
My guess is that in a lab setting, where flies are provided food and are without predators or any demanding environmental factor, it is unnecessary that they ever adapt. Even in a simulated environment though, it doesn't matter much because as is the case with some sharks, even in a vast ocean there can be long periods of no change in a species. In the wild, those flies are interacting with many more factors and seem much more likely to demand change though, especially if present during serious geographic demands.
But you've already consented that there is micro evolution, haven't you? If so you know what would happen... you just don't continue applying micro evolution to longer expanses of time for some reason. The only difference between macro and micro evolution is scale - they rely on the EXACT same mechanisms to occur. Don't you know that?
"But you skirted the question. Where does genetic information come from? Instructions don't write themselves."
Who knows? To qualify evolution doesn't demand that I answer that question though. Evolution, or as you put it, adaptation, is a fact. Adaptation writ large is macro evolution. You have no idea whether these particular instructions can or can't write themselves.
When answering the question, "Can small changes result in the emergence of a different species?" It doesn't matter where genetic information comes from as a cosmological question.
"information does not arise by itself."
Where does it arise from?
What about designers? Where do they arise from?