It seems that the fuel enters the canister through the outside hole and it pushed through the filter and from there the filtered fuel travels to the carburetor through the center hole.
I might have the wrong filter because it appears that the feed to the canister through the outside hole is blocked by the filter. There is a recessed ring on the top of the filter but there is no clear fuel pathway to the outside of the filter element that I can see. Please advise, thank you!