Welcome to the forum....!
Hello and welcome to the forum. That small valve is your water regulator. It injects small amounts of water to cool your exhaust.
I believe your overheat problem is going to be caused in your carb adjustment after their rebuilds.
Did a shop rebuild them for you? If not, you need to look at the plugs now and right after you over heat to see if there are signs of leaning out. Do you know what to look for? If they are running lean, then you can open your low speed mixture screw just a very small amount. The way I do this while running it, to open until you hear the engine start to sound a little rough, then turn it back in a quarter turn. Do that to both carbs.......
If you had a shop do this, take it back...........:cheers: