Yeah, that doesn't look quite right, the level should be just a few millimetres down from the top edge of the bowl.
The clear tube thing isn't as straight forward on the pd carbs because we block a vent to do it. We somehow have to get rid of the air bubble in the tube, without pushing fuel back up the overflow.
It's hard to explain how though, I'll try anyway..
If you drop the open end of the tube down a bit (to make the loop bigger) with the drain screw open, it should allow more fuel in the tube, let it fill a little, close the drain. When the bubble is at the base of the overflow opening again, lift the open end up slowly until the air has just been pushed back up into the carb, open the screw slowly and slowly drop the open end a little, if more air appears, do it again.
When there is no bubble and the screw is open the fuel level should rise to almost the top edge of the bowl, if you slowly drop the end again, it should rise back up to mark again. If it floods and keeps rising the upper body vents may be blocked.
The 12mm float level will fill the bowl in theory 2mm higher than the 14mm level, It's the buoyancy of each individual float that detemines the fuel level at any given measurement.
We assume that all the floats have the same buoyancy as brand new standard floats when we set them by measurement alone.
Trouble is they often aren't quite exactly the same.
So we check the actual fuel level and adjust the float level measurement to reach the desired level instead.
I'm pretty sure you were getting way too much fuel on yours though, the jet that fell out slows down/meters how much fuel it could pull in, without it , it was pouring in, so much it couldn't set it alight in the cylinder.
