It does sound like one of them has air in the system, but the reference for the measurement is confusing - what are the measurements relative to the grip? The one that is closer to the grip when the clutch disengages probably has air in it, which is likely in the banjo fitting (discharge end). Follow Blackduck's instructions for getting this end lower - you may have to unbolt the reservoir and move it - then VERY slowly pull the lever all the way to the grip. Hold a count of 5-10, then let it snap back; this will pull air out of the banjo as the fluid rushes back into the master cylinder. Repeat until the position of the lever when the clutch firms up moves away from the grip.
My dad and I have the exact same Valkyrie model, color etc. So we measured how far from the switch box with the directionals the clutch lever moves prior to clutch engaging. I believe I probably have a bit of air in the banjo bolt and will work on that.
Thanks for the responses, the last time about 30mins worth of bleeding we had the bike up on the lift and level. Is it just the top banjo bolt that is the issue or both of them.
I replaced all the aluminum levers, switches cases and brake and clutch reservoirs with chrome ones so this is what created the problem with air in the system.
Thanks for the help guys will update when I know for sure.
Doug E on the Valky