This should be my last update on this issue.
The grinding noise was due to the upper front corner of the rear shoe making contact with the backing plate (should be a tiny gap), which pushed the shoe outward so the outside upper few inches of the shoe was grinding against the drum. Seems to be a problem with the backing plate as the old shoe shows signs of rubbing too, but not nearly as bad as the new one. I could have taken it all apart and ground the corner of the shoe off, but that's not happening (see above). Instead I hit the backing plate with a punch and big hammer and gained a little clearance, then took my grinder to the outer steel edge of the shoe. No more noise!
I then adjusted the rear brakes and went for a test drive. Brakes feel and work as they should!
I replaced parts I didn't need to, and spent considerable $$$ I didn't need to - particularly on the booster, but I don't really mind all that. My brake fluid is now clean. I have a new master cylinder - plus the old one for a spare - and new rear brakes. The ABS now seems to work. And I learned a bunch. What I do regret is taking 6-7 weeks to work through all this when I probably could have solved it in a day or two if I had checked the rear brakes at the beginning. On the other hand, the progression I worked through seemed reasonable. In the end, I have my truck - my main vehicle - back on the road, and that's what really counts.