Over Voltage with New Battery Disconnect Switch

1...You are measuring the DIFFERENCE in voltage from the battery to the VR which shows the amount of drop. You want one probe on the battery positive post (hence the long test wire) and the other probe "as close as you can get" to the VR ign post. If you disconnect the VR to measure this at the VR connector, you have just removed the load and the drop will decrease, causing inaccuracy

2....I don't know off hand, but you obviously did something. You did not bypass the VR by the description of what wiring you changed