1.1V drop is way too much between battery + and the red wire at the ignition switch. Guessing normal load with lights and ignition at around 7A, that's 7.7W of heat going somewhere... sounds like "not much", but actually enough to easily melt the solder connections behind the fuse clips or damage a bullet connector beyond salvation.
It's best to measure voltage drop rather than actual voltage - the battery voltage will drop whenever the key is ON, confusing your measurements, since the load from lighting and coils is fairly high. Put one lead on battery + and the other on the point you want to measure drop at. The switch red should be close to zero drop - maybe 0.2V max under load. To the regulator black wire (connected to the regulator!) you should have 0.5V or less. If that's not possible even with clean/tight harness connectors and a known good fuseblock... consider adding a relay activated by the black wire, switching power directly from battery + (but have a fuse in the feed!!! - 5A would be good) to the regulator power input. The regulator needs a reference voltage as close as possible to the actual battery voltage in order to work properly!
That drop is in not much wire in the harness, the fuseblock connector, fuse clips, and the MAIN fuse: there's nothing else between battery + and that red wire.
The fuseblock is a common problem, the plating on the clips will have disappeared in 30+ years and the metal surface now prone to corrosion. The ideal fix is to replace it with a minifuse model, drop-in ones are available that fit the old mounting and have the connector attached.
The fuseblock connector also ages poorly. The spade terminals can be cleaned and the females tightened.
The wire is, well, just wire. Unless the insulation was damaged or a bit was overflexed and the metal damaged, the copper inside will be shiny and unchanged (except near connections where oxygen gets in at the copper through the stripped end... but the oxidation just makes soldering difficult and doesn't affect conductivity, unless so severe the wire looks to have green fur.