From here it looks like an extreme amount of rear pad travel may be the culprit, accompanied by air in the front system.
When you apply the brakes, the first chamber nearest the firewall, is supposed to go to the front brakes. If the front does not immediately respond,as in the fluid going out meets no resistance, then the piston inside the M/C collapses but continues to move until it activates the rear brakes. If the front brakes have air in them or excessive pad travel, then you get your situation.
The best solution is to pinch the rear flex-line to isolate the systems. Then get a hard pedal in the front by bleeding.
Then re-examine the rear system to make sure everything is correctly assembled and adjusted. The pads must be in intimate contact with the rotors, and the calipers well centered over the rotors. Then very slightly release the clamp pressure on the flex-hose until fluid can pass thru with a bit of pedal effort. The re-bleed the rear system until you get a hard pedal.
If you absolutely cannot get a hard pedal, then it possibly a faulty M/C that is internally bypassing fluid.
Also, when switching to rear discs from drums, you have to defeat the residual valve in the m/c. The R-valve will maintain a low pressure in the rear line, which will keep the rear brakes applied,which is not good.
BTW; the rear bleeders are at the high point of the calipers, right?
When finished, remember to remove the clamp.
The 1 and 1/32 will be fine with a power booster.Without it,you will need a good braking leg!
If you have an aftermarket P-valve, I'm assuming you gutted the factory one?