Nope, the lever is not upside down. For my type of carburator it is just practically impossible to lift the needle that much. It sits at about 4-6 mm below the flat part of the body.
So I did some more research and found a couple of sites that say the walbro tool is to measure the height of the lever arm(not the top of the needle) That makes more sense to me, at least for my type or carb and it is consistent with the photo you attached and other photos I have seen.
I also found out that the tool is not needed for WT carbs as the lever sits flush with the surface right beside it. This can be set with the end of a small ruler.
I will try readjusting the lever back to where it was and see.
I know I am spending too much time on an old cutter that people say is not worth the money but this has been a great learning exercice, which is what I am really after.
