Grape; Welcome and nice tractor. I agree with the gang likely a carb adjustment.
But to aid your diagnosis, let's talk about it. 120 PSI; good compression; sounds like you are sure of a reliable spark as evidenced when choke is closed and it runs smooth.
So you have an Air/Fuel mixture problem. When the mixture is right into the cylinder head....not the carb...it runs well.
When you close a choke of course (we all know but I am trying to make sense) you make the air fuel mixture richer. Because you reduced the Air flowing into the horn or main opening in the carb.
Fuel stayed the same, (or mostly the same) flow; but when the air was reduced you then had an optimum mixture. So you have a situation where either too little fuel is entering or two much air is entering the cylinder head when the choke is wide open. When you close the choke (or pull it out) the fuel/air is more in sync and it runs right.
What could cause these effects? If you have too little fuel it would most likely be an carb adjustment or a clogged fuel filter or a vent clogged in the Gas cap. Make sure you check those.
If it is not an adjustment
consider too much Air; Air likely is not too much through the main carb opening; rather it would come from a leak, a vacumn leak that allows air to enter a gasket between the carb and the head or from a loose vacumn hose or fitting. You said a new vacumn hose was added make sure it is tight and sealed and in the right place. Use a rubber hose against your ear and around the engine when it is running. Do you hear a vacuum leak? Be careful around moving parts.
Hope my running on helps you to track it down. Sounds like something simple, just have to detect it. I am pulling for you