Howdy all!
Been struggling with a similar issue on and off for the past few months with my '77 550k. Not sure even when it became an issue, as my ole girl is only a year into my possession, and I've been doing work on her off and on in between "getting to know you" rides. Almost 8 thousand miles so far for the year.
Reading all the discussions and suggestions related to this issue I could find, dreading the fact that I may need to bench the ole girl for the summer and tear into the carbs (or worse). I've checked my valve gaps, timing chain tension, gone through the points setting, dwell, advance mechanism, the coils, plugs, ignition wires, clear tube measured the floats, cleaned and set the idle circuit to stock (but adjusted for my altitude), cleaned the fuel petcock and filter, checked for intake leaks, new (lubed) throttle cables to boot.
Due to the fact I have thousands of mostly uneventful hwy and mountain miles under her I didn't feel the need to get deeper into the carb settings...yet. Not being a noob to these bikes, I had all but cleaned off the work bench and ordered a carb repair kit, when I did something while out on a grocery getter ride, sitting at a stop light in traffic, out of pure frustration:
I reached down between my legs and..... fully backed off the idle set screw. *GASP*
Problem. Solved. WTF?
While I'm not entirely sure why this was MY fix, because it seems elementary that if this idle setting is off the bike would just idle high, but that wasn't the remedy in MY case. She ran fine in all situations EXCEPT at a stop, after warming up for a bit, and sometimes wouldn't come down fully when shifting through the gears.
Shes perfect now.
I have been reluctant to post up my finding until I was sure of the result. But now, a thousand plus road miles later, I have zero issue with the "hanging idle" in any riding situation I've encountered. Maybe someone will find this helpful, maybe someone has some insight as to the why, but either way, the simplest solution was the one I overlooked.
Rubber down, elbows in, throttle on!