Maybe try preload instead of clearance. I recently installed the same master cylinder on one of my cars and it is working well with about .010" preload. Peddle travel is minimal and the brakes do not drag when everything is heated up. It is best to disconnect the lines from master cylinder when making this adjustment. I removed all of the fluid from the reservoirs to minimize leakage. Setting preload is easy because you are simply checking the gap between the master cylinder and the booster. Once the lines were reconnected and reservoirs were refilled I did not have to bleed the system.
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