Power Disc conversion/ proportioning valve question

I fully agree with your bleeder positioning analysis, but I respectfully disagree with your second statement. I think there is a misunderstanding of what I was trying to illustrate here. You are right, the Teflon tape is not needed to seal a closed bleeder screw, as they seal with an angled seat and tapered bleeder screw end.

However, the Teflon is often needed when the bleeder is cracked open, with a preferably clear plastic tube fitted over the tip to direct the fluid into a clear jar, so you can see any bubbles. The Teflon around the threads comes into play at this time.

I say this because, most of the bleeder screws I have dealt with will seep fluid around the threads when they are unscrewed even slightly. This "leak" can potentially allow air back into the system during the bleeding process. It's happened to me numerous times.
If I read you right, you're not to take the foot off the brake until you tighten the bleader, so not to allow air back into the system. I also always use a clear jar with a little fluid in it and watch for any air being removed. Remember, always blead from the further location and work your way to the closest point to the master cylinder. Usually, RR, LR. RF and LF, in that order. Keep your eye on the fluid level or you have to start over again, if you draw air from the master cylinder.