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no one has a clue if your rail pressure is in spec and stays in spec when the motors will not increase RPM.
I have no idea what that 1st pic is supposed to be of in post #9
looks to me that hole is above the fuel bowl level, so fuel should not be that high.
might check the float and needle and seat to see why it is over filling
2 people have given this motor away, so you need to take things apart to try and see where that water is coming form.
maybe bad tube or grommet it sticks into, or a hole in some other part of motor