1960 Hydraulic clutch geometry

[Desert dog]

The new stock brake and clutch systems are installed and bled. While bleeding the clutch it appeared there was 3" of play at the pedal prior to the master being engaged.
A check of the new master cylinder indicates the same plunger dimple depth as the original. The rod appears to be stock and is a twin to the brake master. I extended the rod to its full length and still had 2" of pedal play.
The slave does move the clutch arm about an inch once the master is engaged.
Using a coupler I was able to increase the rod length to an acceptable length.
I am concerned about damaging the master with too much throw by bottoming out the master plunger.

Respectfully, my questions are as follows;
Is it normal to have that much pedal play prior to engaging the master?
How much clutch arm movement is normal?
Which of the two positions on the clutch arm should I be using?

As always, Thanks!!