Help with MSD 6AL and billet distributor set up

Thank you for an excellent clear description! I presume that the bypass is just a connection between the wires at the ballast resistor? At that point there's no reason to even retain the ballast resistor at all? Just make a neat connection between the two wires on one side and the single wire on the other side, right?
Yes.
Also make sure the firewall connectors for IGN 1&2 are in good shape if you have supply voltage issues.