Yes, I found several discussions about the seal. Looks like the lip faces out instead of the metal out? Thanks for your help.

I ran the motor in a barrel yesterday. It ran fine and made no unusual noises. The only issue is the high speed needle in the carburetor has to be set at 1/4 turn out from lightly seated or it dies. I replaced everything in the carburetor except for the cork float which I have ordered the modern replacement and will change out. Looking at the parts list I can’t find anything out of order. I searched for tips on what could be causing this issue and found part #70, 302984, Gasket – Float Chamber to Carburetor Body Boss mentioned as a possible problem but I changed that out with a new one during the rebuild. Chased all the circuits with fine wire, soaked carburetor, and blew them out with compressed air.

I was going by the operating instructions stating 1 1/2 turns initially. It wouldn’t start at that setting but eventually got it started by turning the high speed in.