Also, is this a reasonable fuel level in the fuel line?
No. Your in line filter is empty.
The filter is empty because the fuel line with the added inline filter is running uphill.
There can Not be any uphill flow in the line between the petcock and the carb inlet!!
Any uphill in the line at any point impedes the minimum gravity flow these have. (Get rid of the filter as has been said already.) Replace the fuel line with new 5.5mm line cut to correct length so there is no uphill flow between the petcock outlet and the carb inlet at any point in when hooked up. You have to use needle nose pliers to hook up the lines and clamps when correct length of line is installed.
If the filter was installed because you have any rust in the tank??(most are put on because the tank is not rust free) then you need to de-rust the tank and get rid of the in line filter so the line is all downhill from the petcock to the carb inlet. Period. As Hondaman said, be sure that the brass screen in the petcock is clear and good.
I have found that electrolysis cleaning method(3-4 days) followed up with a full tank of Evaporust (2 days) gives great results. I rinse the tank with water after the electrolysis cleaning and drain fully, then immediately fill the tank with Evaporust to the cap and close the cap for 2-3 days. Then empty the Evaporust, strain as you empty through a large fuel funnel that has a brass screen, back into a 5 gallon bucket to be able to reuse the Evaporust again when needed. Then immediately rinse 4 times with fresh diesel fuel (2-3 quarts per rinse), well shaken in the tank before draining out the fuel cap. After final rinse I use an old clean white sock on a 2' flex grabber tool to wipe out any excess diesel fuel/water mix, then pour in 6 oz of 2 stroke oil and turn the tank all around in multiple directions so to coat all surfaces of the tank with the oil to prevent flash rusting. Then dump out the excess oil, then fill with fresh gas. The little oil left coating the tank will mix with the gas and will burn fine in the carbs and helps lube the carbs and valve guides. I suggest that you continue to add 1-2 oz of 2 stroke oil to every other tank of gas to help prevent rust from happening again.
I've included pictures of 2 tanks before and after that I have cleaned as above, one was very rusty but didn't leak so it was usable still(green 500/4 tank) and my blue 750 tank had just surface rust that left particles in the carb bowls that effects running quality.
Hopefully someone hasn't lined your tank previously.....
When the brass outlet of the petcock was epoxied back in, was a drill bit(carefully turned by hand with a pin vise !) used after the epoxy hardened to ensure there was no excess epoxy blocking the flow?
What is a pin vise you ask? It is a holder for micro drill bits, to hand turn the small bits, up to 3.1mm bit. Find the bit that fits the brass inner diameter.
Carefully turn the bits by hand to ensure a clear path for the fuel to flow.
Hopefully you have read through this dissertation and understand the problems and fixes.
Report back with your findings and results. Don't leave your thread hanging.....