Don’t see anything wrong.
Put your reading glasses on Rivets LOL. I see a lot.
First off, wash that mud bog Saturday Night Special off. Remove the top metal engine cover. Clean the block and all cooling fins like it was a NEW engine. These are air cooled. Running it like that, you are asking for engine damage. Those fins must be clean and clear to dump off engine heat.
1.Where's your throttle cable? It goes in the green hole.
2.The 2 red areas are just two that are filthy. Clean this engine and blow out/off with compressed air.
3.Blue part is the air vane. The faster the engine revs the more air the flywheel generates to cool the block. Clean this and BE GENTLE WITH THIS PART. Most of these parts are NO LONGER AVAILABLE. CAREFUL with the air vane. The higher revs will push the vane to the left in this pic. Which will close the throttle plate dropping down the revs.
4.Purple is the throttle linkage. Connects the air vane to the throttle plate to control revs.
5.Orange part is the idle speed screw. Set this at 1800rpm, no load.
Far as revs go, Briggs states to run at MAX revs ALL THE TIME. This is for max lubrication and air cooling. This is the recipe for max engine longevity/durability. So set your max revs to 3200-3600rpm. Don't idle down as this is a splash lubed engine. Lubrication will suffer.
Might check the valve clearances while you are there. Clean out the fuel tank and install a new carb diaphragm.
Last time, careful with this little guy. Many parts are no longer made by Briggs. These were built to last.