Disc brakes feel spongy no matter how much I bleed them

Rear brakes adjusted correctly?
I usually set them up so they are
Just rubbing. And cycle pedal several times while adjusting. parking brake cable needs to be adjusted properly too.
disc brakes use a 3 psi residual valve and drums use 10 psi residual valve.

That's a good point, you can also adjust them up tight to see if the pedal is low because of shoe adjustment. So far as residual, tho, these cars did not use and should not need one in the disk circuit. The drum end, (rear) yes. That should be built into the proper master