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Don’t try to overthink it. Turning it to the left enrichens the needle setting and closes the choke for starting. Once started, turning it back to the right releases the choke and sets the needle to best running position.
For a beginning setting, open the needle about 3/4 turn and install the knob pointing up.
Once you have it running and all dialed in for best running, loosen the knob and retighten it in the pointing up position without disturbing the needle.
Not sure what you are thinking will damage it. Have the knob pushed onto the needle till it is flush, and tighten the tapered screw #30 to hold it tight to the needle. It won’t damage it unless you are Harry The Ape.