Well I got time this afternoon to get to the boat (hr away) and dive into this issue. Here is what happened and what I think we have learned.
1) We checked the timing and it was correct at 10def BTDC which is what the manual suggests at idle. It seemed to advance as it was supposed to at higher RPM. Doesn't seem to be the stalling issue.
Result: Boat still stalls under quick throttle
2) Checked the vacuum on the engine and when the engine starts it goes up to around 17"Hg which it on the end of the "good" range for vacuum pressure.

After it idled for a bit it ended up settling around 18.5"Hg

This PV doesn't follow the generic convention people use for Holley carbs so we thought we would start there to try things.
3) We swapped out the power valve (what I think is a 3.5 since the markings are UN-READABLE!) for a power valve (PV) plug. That totally takes the power valve out of the equation. The engine did NOT like that and it ran like crap at idle and barely could stay running. Stalled when you tried to give it even the smallest bit of throttle. This was not the answer.
Result: Going to PV plug did not help at all (made it worse).
4) My uncle had a 6.5 PV from his car so we decided to give that a try and you could feel the physical difference in the springs stiffness between the 3.5 and the 6.5 (with the 6.5 being much stiffer). We swapped that in and then started the engine up. At first it seemed to idle rough (looping?) but we adjusted the idle speed and that seemed to smooth it out. At that point I tried hitting the throttle hard and it worked! It was able to rev really fast and get there quickly where it would have stalled before. We even noticed that maybe the jet spray looked more uniform?
Result: Going to a 6.5 PV seems to solve stalling at quick throttle issue (but made it not idle well).
4) Then we went then to try to get the idle speed to be within spec and get the engine to run smooth at idle, it was running very lumpy/surging. We put the idle mixture screws to the seat and then backed them both off to 1 turn off the seat (manual spec). The engine did not run better and we could not get the engine speed to the 550-650 RPM without stalling. We then played with the screws between 0 turns and 2.5 turns out and it seemed to be the best at almost seated (1/4 turn?). What was more strange was that it didn't seem to make a difference in how it idled from 1 turn to 2.5 turns...like those screws weren't doing anything?
Result: Couldn't get boat to idle at speed and smoothly by adjusting idle screws with 6.5 PV
So where do I go now? Our thought was to get the carb back to stock as close as possible since it doesn't like to idle anymore and that is no good. It has currently #71 jets and the spec is 72 so I was going to purchase those and swap those in when I put the 3.5 PV back in. If that doesn't work what would I try next? A 8.5 PV? (18"Hg/2=9) The only other werid thing is we could hear the engine make a small noise ("tis" "tis" sound and it we noticed the vacuum gage needle drop when we heard the sound. I tried to take a video of the sound. It is mostly heard from the left side of the engine. Maybe the exhaust flapper is stuck/busted causing issue?

Thanks for everyones help and suggestion!