Generator question - let carb run dry or keep it wet?

since fuel is getting into the oil it must have a diaphram fuel pump and the diaphram needs to be replaced. you may need to follow the fuel line to find it as it could be on the carb or separate.

As for storing dry I normally do this if it has a shutoff and will be a long time, I also treat all my gas cans with sea-foam so it probably doesn't matter.