Re: 1976 Mercruiser 302 stalls at idle after letting off the throttle
High engine vacuum will suck extra fuel from the fuel circuits. So by the time the engine is at idle extra fuel can be drawn in and changed to a very rich mixture. That will stop the engine with NO BACKFIRING.
2 common causes of over rich on slowing down are a over rich idle mixture, smoothed out by raising the idle speed screw.
Other cause might be a slightly high float level. Depending which way the float hinge pin is facing. That can cause the fuel to slosh away from the float, dropping it & the needle opens up & fuel starts flowing in. When stopped, the excess fuel sloshes the other way causing over rich condition. Restarts are quick.
Lean out the idle screws. Slightly rough idle at the right idle speed. If it still stops running.... Restarts might be harder, unless you pump the throttle.... I vote for a little high float level.
Carburator is old enough to have had a incorrect float setting from a rebuild over the years. I had a 460 Merc in a car where the float chamber gasket was not sealing whenever you floored it. Raw gas dribbled in to the engine.
That condition you have, should not be ignition problem.