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Good. That's exactly where it is supposed to be.

Be absolutely certain the choke is open fully when the engine is fully warmed. If it is not, it will burn too much fuel. The solution is to adjust it (rotate it), not to remove it.

A very common rebuild problem is to put the carb top gasket on backwards, on crooked or to select a similar-looking but incorrect one. All these can cause it to use too much fuel (depending on where the gasket mismatch is).