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Classic Parts sell both replacement switches for $24.95 and original style for $49.95. I bought a original style that matches the OP’s picture exactly. So far it works perfectly. The original style does not come with a knob or shaft so you will have to use your original.[LINK] [classicparts.com]

I added a picture of my old switch to show you how it is wired.

Derek, if you compare your photo with Phak1's photo above, it looks like you have switched the parking light and headlight terminal. That would explain one of your problems.

This is the problem with the internet in general. People putting on things that are wrong. Not checked. Derek's labeled switch does not even match the diagram he shows.
As far as that two position ignition switch. You can't get it wrong. It makes no difference which wire goes to which terminal.

Use Phil's switch hook up. He knows what he is doing.

As far as your questions:
1. You now know why headlights come on at first click. You have park and headlights wiring swapped. As Kent has noted and Phil has pictured and your diagram shows.
2. The non blinking is because the tail lights are not connected.
3. The tail lights not connected and the ground for gas gauge are not causing dead battery.
4. The knob on the headlight switch is not designed to smack into the dash. So a clearance is normal if you have the shaft installed properly.
5. If you have a new switch, it is probably good. They don't fail often.
6. Your battery going dead could be anything. Probably something you wired wrong....or a bad battery. Go out after dark and observe any light on somewhere. Be sure key is off. Be sure ammeter is wired properly. It sounds like everything electrical is new. Installed and wired by you. Is that right? Do you have a glove box light or a under hood light? Newer radio? Bluetooth? HERE [wikihow.com] is how you check to see if you have a draw on the battery with everything off.

The labeled headlight switch used by Derek is from Deve's website....and it is wrong. It is unfortunately splashed all over the internet including the HAMB. I don't know if DEVE made the picture or he copied it from somewhere.

ALWAYS USE THE SHOP MANUAL. [chevy.oldcarmanualproject.com]

Jesus, ok. This is awesome! Thank you all for your feedback. I'll have to get out to the truck this weekend and make some corrections. I (still) can't tell you all how much I appreciate your time, expertise and advice!!!

Derek

Your truck is serial 1001? Holy Moly...........that is awesome!!!!!!!!!!!!!!

Hahahaha, yes sir. I know. I thought the same thing when I found it in a barn in 2007! The story was as simple, but as rich as any you could hope for. This family owned it for over 50 years, having bought it from the local Chevrolet dealer who owned it for the first few years (and likely the reason for it being 1001!). So I was only the third owner. The only bummer was that it had lost its original engine and transmission long ago because of an unintentional date with a pond 😀 As bright spots, at least they replaced the transmission with one of the same US L serial number and a GMC 270 motor (with a bit more power👍). Thx again for all your help, I’m gonna try to get out to the truck Sat or Sun. Will keep you posted until we’re up and running!

So Phak1’s labeled pic shows STOP LIGHT left and DOME LIGHT right. The switch in the original schematic shows DOME LIGHT left, STOP LIGHT right. Can you guys confirm which is correct?

Thx,
Derek

They are on the same terminal. Either is correct.

Doh...guess all I had to do was look closer at the switch 🤪, thank you!

Is it possible you wired the ignition switch wrong (or simply left it in the on position, like I have done before) and the ignition was powered when you left it overnight. If that is/was the case that would account for the battery drain. On the ignition switch both the ignition and accessories terminal are electrically connected together. So if you wired it incorrectly, even if you switched off the key, the ignition could still be powered.

If you find that to be true, you may have also cooked your points, condenser and coil.