I'm adding the baffle and an oil accumulator. Those together should fix my issues. If not, I'll get a better oil pan as well.

 

I'm going to call .352 pickup clearance on the tight side, for sure. I shoot for .400-.500 clearance on anything LS, just because of the volume. The amount of oil these things pump with a Melling or VVT pump is a lot.

 

Well, I'm waiting to get my baffle today, so I can always reset the pickup clearance if needed. I just see a lot of varying opinions on what the correct distance should be. Just out of curiosity, what is the best way to increase the clearance? Just bending the pickup? Or cutting and welding the pickup support bracket?

 

This detail should not be glossed over. This is the whole reason dry sump systems provide improved oiling performance, by providing a means of de-aerating the oil.

The internal bypass on the factory style LS pumps will aerate oil and cause loss of oil pressure. It is proportional to engine speed. Running a higher volume pump with a light spring makes oil aeration worse. The issue can be addressed by increasing bypass spring pressure. You would be surprised how much oil these pumps are bypassing constantly. I run a 10355HV with stiffest spring - 95 psi hot idle oil pressure. 150+ psi over 4000 rpm. There will still be a progressive reduction due to pumping at sustained high engine speed with the gerotor pump and wet sump, however in my experiments this reduction is absolute, not relative to total pressure. The ~50 psi reduction OP saw would still result in 100+psi oil pressure down track if running less bypass.