Stalls in Gear, Automatic- Restarts Good- Can Slam it into Gear! EEEK

Yes, a larger gap, maybe 5/16 or 3/8.
If the level is TOO low, you will have a dead spot coming off idle, but you are nowhere near that condition right now if you see any dripping in the venturis.
If the needle valve screws had been overtightened, the taper might show a line or ridge which can make it difficult to adjust.