I have a John Deere backpack blower model number ty9502.
40cc 3.2 hp @7500 rpm would this be a good engine to convert.

You know what they say,

Nothing runs like a deer!

Run her up to full throttle and hold it inverted, sideways, etc,etc and see how it handles it.

Years ago Echo built the John Deere chain saw line. This unit may very well be an echo. Resp. Echo

Yeah, it is an Echo/Kioritz unit, at least EVERY J-D I have ever seen is. Backpack blowers are probably the easiest conversion possible.