The primer bulb not emptying with all needles closed it correct. It should NOT let any fuel into the carb when the venturi create the vacuum. The reason for the test is sometimes these junky carbs will get the needle screw springs bound up, or a bit too long. What happens is 'fully closed' really isn't fully closed, and all of a sudden your base line for # of turns is off. When I was new to the engine, I was way off from normal starting needle turns to get it to even run after checking all other turning tips from DDM / forums. When I Closed all my needles, it was still open on the low.Testing for spark also confirms your killswitch isn't faulty, causing a contact interrupt. That mixed with the flywheel gap being good, should net you strong spark. If you haven't already, I would introduce a new spark plug vs. just the cleaned /re-gapped one just for extra insurance in the troubleshooting phase. It's a cheap costs to remove it from the equation.
Was it at idle warming up and just died?
Did it race (RPMs ran up) first, or just bog out?
Is the choke plate staying to where you set it, not so loose it may auto close?
MY stock carb idled best at only 1/2 turn out on the low, the stock starting points on DDM website failed for me. I was scarred of lean issues, but some baja guys at my local track who easily had $10,000 into their 5 baja's tuned it and said it sounded good.