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Yup, that's where the choke circuit gets its fuel. Should be clear. The fuel control orifice for the choke circuit is in the end of the brass pickup tube in the upper half of the carb body. So you can go ahead and clear out that hole in the bottom of the bowl and any crap in the well of the float bowl.

An hour with the KZ brought me here:

This is my bike now. The swing arm held up by a strap. The bike sits well balanced but for security I have a strapped a triple tree to a solid mount.
Next thing will be removing the swing arm, removing the engine, and transporting all to my place.

Judging by the pics, this KZ is lucky to have you working on it. Looks like is was neglected.

That space you're dismantling in looks fairly spacious. Couldn't you set up shop there? Looks like it would be better than the small apartment .

Haha, yes, the place is actually so spacious you could set up a dealership on the first two floors and a repair shop on the bottom one. Cars are already there as well. Wouldn't it be nice.. lol
I think you know what I'm saying. It's an underground parking at my friend's apartment complex. I guess no need for the gory details, but there is no overhead light and no electrical outlet with 50 feet, people and cars come and go, keeping anything except a vehicle is verboten. Even if it was fine to have tables and shelves there, a public open unsecured space is not a place for having a mechanical workshop. Not to mention fire hazard which comes with keeping cans of solvents around and safety of my tools. That black dark square on the right is where water floods when there is too much rain.
Anyway, as a visitor I can only 'hit and run' at the bike once in a while, then hide it under the cover so everything is nice and neat. It's a pain in the ass to transport parts back and forth bags with my tools weighing a tonne, and whatever I dismantled back to my apartment especially with the cold and rainy weather coming back. Luckily, I have my spacious transport 'boat', the fully equipped with bags Honda Goldwing, to help me with these tasks. Still, people give me the look when I sail through intersections with a pair of wheel in the back seat and forks sticking out on the side. For me, after years living in and around Asia, moving this kind of small items is normal and not a big deal, haha

I am very lucky to be able to have a space to dismantle this bike. Soon it will be at my warm and cosy place for the next stage. When all done, but still in manageable sub-components, it will go back to that parking for final assembly (wheels to frame). I am very good at organizing spaces, despite the constrains of my one bedroom you wouldn't even know there is a bike an a half there. Literally. Navy life teaches a person efficiency and neatness in tight spaces, then years lived in Japan famous for small living quarters improved that even further. Some of my best convenient homes was a over fiver years in a yojouhan, a four and a half tatami apartment, roughly 2.5 by 3.5 meters. You can sit in the middle and everything is accessible just extending your arm! haha

Anyway, too much talk bike unrelated, but couldn't help going down the memory lane. I truly miss those times, one of the best in my life! But it also explains why I will have to put this bike where I do.