Given you have the UNI foam air filter, I recommend connecting the side fitting to the engine cover.
The bottom fitting is fitted with a "pinch tube". The original was a reduced diameter hose and was capped at the bottom. The Cap had a slit cut into it where it it could block air flow, but still allow fluids to leak out (such as if the filter box filled with gasoline). Water and sludge may accumulate down there. So, at service intervals, the tube was pinched to allow anything collected to drain out.
Connecting this way will allow engine crankcase gasses to flow into the carbs via the air filter. Later when you collect the missing parts, those vapors will bypass the filter element and go directly to the carb inlets.
But if MPG is any indication, I'd need a tune-up every 15 miles! I haven't kept a super close eye on MPG, but I'd say I'm in the 25/gallon range.
It is not absolute MPG that determines my filter and tune up attention. It is trend info. If you drive a set route, you know what the bike gets in good tune, clear air filter. When I had to switch to reserve I note the miles driven. The Fs and Ks have different tank size, so it is not the same miles driven for both. Anyway, you learn what is normal for the bike. And then note each time you switch to reserve. If I noticed I got, say 25-50 less miles than normal, Then that would send me looking for the reason. I'd clean the filter check the tuneup stuff, change oil if it looked and felt bad, etc. After doing that, invariably the miles before needing reserve would go back to "normal" for that bike.
Having said all that, I must say that 25 MPG for a 550 is major suck. Gearing, tune, or outright faults are indicated. I suppose if you did all your driving in first gear, ok maybe. Otherwise, you got some tweaking to do, imo,
Cheers,