[Dashman]

In my opinion the front brake line coming off the combination valve upwards shouldn't matter because it was designed that way for two front brake lines. However, typically when using a single line with a tee, others (factory included?) used the bottom port and plugged the top. I don't think it will matter.

Someone else, on this forum, stated that their switch was too sensitive. Are you seeing a lot of movement of the shuttle valve? Having removed the switch, how much movement can it have before the light turns on?

How do you know that the proportioning valve isn't stuck in the open position? It's function is too reduce the pressure to the rear, right? What would the shuttle valve do, if the proportioning valve wasn't doing its function? I think it would slide rearward a bit. You could replace just the proportioning valve, and see if it makes a difference. Then you could disassemble the first proportioning valve to see if there was a problem.