Carb issue?

Re-reading the OP.......

Are you saying the engine won’t idle down when you close down the blades?

Or, if you close the blades to a more “correct” position...... the engine won't run(or runs poorly)?

My responses were based on me thinking it was the latter.

It will idle down, but too low to run. Have to adjust turn the idle screw in too far for the idle circuit to get it to idle. Then it runs way too rich at idle and had the off idle hesitation as expected. If i introduce air via a vacuum leak or manual cracking thw secondaries rpms jump and vacuum becomes higher and steady.