By closing off some of the air going in makes it have a richer air fuel mixture which is the same as partially closing the choke. I'm not going to keep posting replies to this so good luck
Running the engine without the shroud on will cause over heating. I believe you have a blockage in the carb and not getting enough gas or you have a intake leak and its causing it to run lean which will also make the engine run hot. Both will cause surging.