yup
and yes the stop lever is circled in the pic above. The stop solenoid is attached to the stop lever. When solenoid is energized (when you turn the key off or fall out of the seat-assuming the switches and combination box work properly) it pulls the stop lever which moves the rack in the pump to "off". Kills fuel flow through the pump.
With that said you can infer that there are several possibilities. Stop solenoid, sticking stop lever, wiring, combination box, and fuel injection pump. Then you have your supply side which you've already addressed, said you have flow at the bleed screw.
Sometimes the stop circuit can get fouled up. I've had some of them where the solenoid appears to work fine and it is sticking a little, holding up fuel flow. If that is suspected I'll disconnect the solenoid from the harness, and then manually (with my finger) grab the little philips head screw on the stop lever and move it either ON or OFF. If you look at the lever and how it operates you'll see it's stops. It should go fully against both, one stop is off and the other is "on".