Ok I'm outside working on it right now, here are some updates.
I took the air filter and airbox off and it started up and did NOT die. Now its running and it still surges every few seconds but not bad any more, not like its going to die. But its not running smooth thats for sure.
Ran with no fuel cap on, no change.
If I partially cover the intake with my hand (manual choke), it does NOT improve the running at all. It just kills it or almost kills it.
If i manually push the throttle lever open, it revs right up no hesitation. But if i over-rev it, the governor will pull it back.
This all suggests that the problem is not the carb or the fuel flow, right? Somethings else?
I'm going to let it run for a while longer and then maybe take things apart more and see what I can find.
I'm not sure why it was dying with the air filter on, and running much better with the air filter off, when the filter itself is super clean and spotless. Very strange. Its kinda like someone sprayed clear coat on the filter so it looks good but doesn't let air pass. That said, I held the air box and filter in place while it was running and it didn't kill the engine so maybe it was just a coincidence.