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When playing as Venice and sending a "Merchant of Venice" to a city state and turning it into a puppet does it contribute to votes in the World Congress?

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No, it does not; the City-State-provided votes are based on the number of City-State allies you have, and a puppeted former City-State is not an allied City-State. This can mean losing a vote, if you puppet a City-State you are already allied with, or it can mean depriving a rival of a vote, if you choose to puppet a City-State they are allied with.

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No.

When Venice buy a city with a Great Merchant, it ceases to be a City State for all purposes. It no longer provides its friend or ally bonus and no longer counts as a city state ally for World Congress votes.

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