The second nipple that is capped off is another vent, same as the otherside. The carb only needs one vent to work properly.
If the fuel pump is bypassed the machine will run out of fuel when the tank gets to approximately 1/3 full (just my guess) Fuel pump is used for when the fuel level in tank gets near level with the float bowl on carb.
I would not recommend using an aftermarket cheap carb, they are crap. The fitting is probably for the pulse line on the fuel pump. Rebuild original carb is best