Lean burns faster than rich.
Your inlet valve leaks
The combustion chamber is still heated and gas in there is also rather turbulent. When the inlet valve is slammed open - usually when the piston is either"on the rock" or even prior to the actual intake stroke (usually due to wear in the cam/actuating lever path) there is local heating and therefore expansion of the air in the inlet tube plus some intermixing with the turbulent heated gas in the combustion chamber which causes a momentary "puff" of air out the carb.
The last is nothing to worry about - in fact it happens in our own beloved boxers (and for that fact any 4-stroke engine) - it is a question of degree and all the old stationary engines I've worked on have suffered from wear in the cam and wear in the path of levers, rods etc. leading to the valve.
Backfiring should be looked at as if the cause is what I suspect (leaky intake valve) eventually bad things may happen.
Lastly remember that any "pump" fuel you buy now is goign to be a lot higher octane than what the thing was designed to run on - I used to try and work out the octane of the fuel an engine was designed to run on and then cut pump petrol with kerosene to get approximately the same - at least is going to be "worked" - if it was purely display, running at little over idle and connected to a nominal load, I didn't bother.
a consequence of modern fast-burning fuel can be backfiring and also excessive heat in the combustion chamber - you can measure that with a thermocouple under the spark plug
An alternative is to run them on compressed natural gas if you can buy that cheaply in your jurisdiction, it is very kind to old engines being slow burning