ALL of the rebuild kits you are buying in the past 15 years or so come from the same source. They will NOT have the correct high flow N/S assembly in them and it should NOT have windows in it. They blue pumps seals are "soft" as well, and why I have good USA ones made with a lifetime warranty on them.
I would recommend one of my kits and set the float to 1/4". I also have the "orange" PP spring reproduced and would put one of those in place as well.
Go back to the small MAB's and close to the stock jetting. With this new fuel it helps to increase delivery by apprx 5 to 7 percent across the board. Install one of my adjustable APT screws in the baseplate so you can nail down part throttle A/F without pulling the top off the carb and changing parts.
Pull the idle tubes to make sure they are not varnished up and size them at .038". Nothing else in the idle system would need any help for what you are doing.
Lowering the compression ratio NEVER helps for power production (torque). The factory 186 heads are excellent, right up there with the excellent 041 castings used the same year. The combustion shape is excellent and they will do fine on pump gas at high compression ratios with the right cam choice.
Those 327/350 and 350/350 engines will run fine on currently available 92-93 octane without running hot, overheating, pinging or "running on" with careful tuning. The factory really did know what they were doing when they designed cams for them. They also used .020" thick steel shim head gaskets and pistons near the top of the block at TDC to keep quench really tight. Most folks miss the mark considerably building those engines putting the pistons deeper in the block and TDC and using a .040-.060" "builder" head gasket on them. That NEVER works out well.
Neither does lowering compression and going to a smaller cam (short seat timing, tighter LSA and earlier intake closing point) with a point or so less compression just kills off power (torque), pulls power down in the RPM range, and considerably LESS upper mid-range and top end power.
I prefer to use the 327/350hp cam in 350 builds with 64cc heads, squish around .035" or so, and 10.5-10.6 to 1 compression. You will have a hard time finding a cam from anyone (doesn't matter what they tell you) that will idle better, and make as much power at any RPM over nearly as broad of an RPM range. Another excellent cam for the later blocks is the GM LT4 "hot" roller cam with high ratio rockers on it. Comp Cams wishes they could grind one that works as good but they insist on going tighter with the LSA so the end user has "menacing" idle quality, not the most power at every RPM with a smooth idle and more vacuum for power brakes, etc.......
The "run-on" deal comes from not quite enough initial timing combined with not quite enough idle fuel and bypass air, or a little of all three.
The current engine in my car is 11.3 to 1 compression, 200 psi cranking pressure, 13.5 vacuum at 700rpms and manages pump fuel now since 2009 with zero issues anyplace. IF I drop back to 87 octane fuel it runs fine on it, but will also "run-on" once in a while but only on really hot summer days with the engine fully heat soaked.