Closing the loop on my progress and repair of our '85 345 for a potential future reader (and giving back the AS community that has helped me so many times already in less than a year). Please feel free to correct and/or clarify as needed.
I had to replace the front U-joint and removed the front half of the driveshaft (e.g. chock the wheels, loosen the Orschlen lever adjustment, mark driveshaft orientation so it goes back in the same way...).
Removing the driveshaft is not necessary for the parking brake adjustment, but it made access to the drum brake adjustment star and figuring out the proper setting much easier.
While the driveshaft is out, position an access hole on the parking brake drum at 12 o'clock and turn the adjustment star as needed (turning it from the center of the drum toward the outer edge widens the shoes) until the shoes drag on the drum slightly. Back off the adjustment star until the rubbing goes away. Reinstall the driveshaft (in my case with a new U-joint).
If Orschlen lever adjustment doesn't take up the cable slack (parking brake still doesn't hold), adjust the parking brake cable barrel adjuster by loosening the locknut, holding the barrel still and turning the squared cable end (end toward brake drum) to shorten the barrel's overall length (thereby taking up more cable slack).
Tighten the locknut and test if the Orschlen lever adjustment takes up the rest of the slack. If it doesn't, repeat the barrel and Orscheln lever adjustments until the parking brake holds as required (in my case, Massachusetts vehicle inspection, to
1500 rpm in Drive).
Not sure what caused the shoes to wear or cable to stretch in our case. Fixed now though.
Luis