My first thought was that if this is a disc brake conversion, check for clearance between the calipers and the knuckles where they were ground.
If you can't see good daylight between them, maybe they're catching and forcing the pistons to extend too far each time.
But missing brake fluid, if it's not filling up the calipers, has to go somewhere. Like was said...
Proportioning valves are designed to keep the REAR from locking up prematurely. And they don't necessarily limit pressure during normal braking. They limit the sudden onset of high pressure such as under a panic stop.
Personally, I still prefer my rears to lock up first. Just barely, but first so I know that I'm about to lose all control if the fronts lock up!
I've locked up the rears on many different cars, and have not once had the rear end try to come around. Now, I've never locked them up going around a sharp corner, but have done it going around mild corners and while moving over to a different lane position to avoid someone else's sheet metal. Never once found it disconcerting to lock up a rear first.
Now, a front? I seriously dread the thought of locking up a front brake under any condition except straight ahead on a hard surface. Only a few places would locking up a front not bother me.
But I get the overall logic of not locking the rears. So the whole idea of a "combination valve" with all the bells and whistles, is to first delay the fronts (metering or delay valve), flip the switch in the case of a pressure differential, and block the sudden onset of high pressure in the rear. Multiple jobs, which is why it's called a combination valve.
Fords up until the late sixties used three separate components for these jobs with disc brakes. Or four, if you include the residual pressure check valves.
Paul