Hi Widget, you've installed it correctly but they are mangled and will need to be replaced. The 2 little flaps that are circled should be flat as their purpose is to open and close the holes in that circuit as needed for the carby to function correctly.
Replace the diaphragm and you'll find all your problems will be solved. And remember not to let the carb cleaner come into contact with the diaphragm as it will cause it to curl the way it has.
