Should the return pressure be less than 36 PSI?
Yes.
As Laitch says, the fuel pressure (downstream of the regulator) should be close to nothing.
If it's 36, that's a problem. that would mean there's a blockage downstream of where you connected the gauge, either the hose or the tank. It should be easy to blow air through it.
If the blockage results in 36 psi, that's an unfortunate coincidence, that should not result in flooding.
That guide is a really good one, but there are a few small mistakes in it, you've just found one. The regulator doesn't reduce the fuel pressure, it increases it from close to nothing to 36 psi. If there's a total blockage for example in the return line, the pressure would build until something failed, for example a hose might burst. To prevent damage, the pump has a pressure relief valve, it opens at about 60 psi.
Is fuel also returning to the tank while cranking?