X2, Float level setting procedure described above is as clear as I've seen.I re read your initial post and you say it runs good unless you let it just sit and idle for a while, then it will foul plugs.
So exhaust is not the cause of your problems.
I would still lean towards the carb.
Pull the float level plugs out of the carb while it's running and fuel should just barely trickle out of them. I actually like the front bowel at the bottom of the hole and the rear one to just trickle out.
If they are pouring out then loosen the lock screw and turn the fuel level nut counter clock wise to lower the level. I think that's right, any way you will know if it's not then just turn the other way.