If your master is below the calipers then you need a residual valve. There is no residual valve on the stock system and its under the floor. If your dropping the truck then you may have to. By dropping I mean where the master is below the calipers
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Yes disc/disc prop valve.
I use power with 1.125" or 1.5" masters. Power or manual is your choice but if you do manual then 1" is the largest size I'd use.
There may be some fitment issues with a booster larger than 7" using the stock pedals. You may have to modify the rear engine cross member.