I forgot to mention that when the motor stalls it makes a sniff sound not a backfire. I'm thinking it may also be getting too much fuel if that's possible
Yeah, that's possible.
I have the exact same motor, and 3 other 1981-1983 Merc outboards. Don't want to sound like a broken record regarding inlet needles (other posts), but a worn needle can cause flooding, fuel starvation, and other problems.
And it does sound like a fuel problem.
If there is any irregularity to the cone shape of the needle, or if the needle doesn't fall out of the seat easily after removing the float, it needs to be changed.
Yes, that needle is not available anywhere... except one dealer who had some made up. If you need one, call Anchor Marine at 360-457-8822. I think he charged me something like $8.95, shipped; and it was an exact replication.
That motor is particularly sensitive to improper timing adjustment. The timing and the throttle cam need to be set correctly. I don't think timing would fall out of adjustment precipitously, but the throttle cam could have loosened?
Kind of a good practice to check the simple stuff first, like the screen in front of the pump (behind the blue Tillotson inlet cap); and the fuel filter hanging from the pull-start rest.
Hope this helps