Now being that I have an engineering degree the logic behind why they call them 7/8" makes no sense and just adds to the confusion.
The common 3/4 inch cylinder thread in use today is a straight pipe thread. If you are of an appropriate engineering discipline you will realize that pipe threads are sized based on the ID of the pipe making for a large thread for a given trade size.
For some reason beyond me the early PST HP product that you have received a UNF (like nuts & bolt) thread which is dimensioned to essentially the major diameter of the male (valve).
That is why the 7/8 valve is smaller than the 3/4. They are two very different thread formats.
FWIW I have 4 of those cylinders in the collection and they are very nice. For all intents and purposes they are comparable today's X-100 that has a going rate of $350. Between purchase and test fees you should have a bargain there. They are of course DIN only animals but if that works for you then you're good to go.
Pete