Any other ideas as to why the rpm’s are so high?
Yes I do...lol.
It is running too lean because that carburetor is not exactly level, it's angled at an almost 45 degree angle.
I bet the builder put on a straight intake tube on it rather than the standard angled ones that come with the motor kits so the carburetor could be angled correctly.
This means the float level will not operate correctly at all.
I magnified that pic to view things as best I could because that pic taken at a distance and not close up to the motor is almost useless in spotting anything else except for the fact the fuel filter is on upside down as well.
The more narrow end is supposed to face the gas tank...You will see a little round magnet in that narrower end which is supposed to aim towards the tank in order to pic up any fine metal and or rust particulates resulting from lousy Chinese quality control.
Definitely get the gasket on there that you ordered because that is an obvious problem along with that extreme angle of the carburetor and change that intake to one like the stock ones in the kit which will give you the angle needed to feed the fuel to the motor correctly along with a new intake gasket.
The guy who built it didn't have a clue as to how to build one of these...That is why he sold it so cheap...lol...His loss, your gain if your careful to look for anything that could be found due to his faulty building proceedures...lol.