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A KG7 powerhead should have a Tillotson AJ 32 carburetor
while KE7 should have Tillotson
AJ23 or AJ19.
First order of business is to identify what you have and see if replacement cylinder block or repair is route to go,
A KG7 has 8 petal reed block,
Those who REALLY know their Green Tank Mercs can tell what
is what at a glance. With the older Mercs it is more common to find mixed parts motors than as they left the factory,
Damaged threads are not unknown in aluminum, so there
are thread repair products and
techniques. Some fasteners are
best left alone as they are
notorious for damaged thread
if removed… exhaust cover screws in thie KE7 to KG4 series while some screws always snap off flush.
Good Luck
It is not clear if you have only the powerhead or a more or less complete outboard,
Your experience level with h Green Tank Mercs seems to be at low end of learning curve,
Mr, Kiekhaefer did things differently to put it mildly,
The path to knowledge is steep
and winding.
I have a KE7 powerhead on bench in process of assembly
will pose and post photos