Are you saying continuity by a meter tone or by a resistance reading of 0 (or almost zero)? Was the K18 relay plugged in? If not, did you just have the 1 jumper in between BY wires? Was the connector for the ignition switch connected to the switch, or was it off with no wires attached?
The bottom line is that the BY wire is never grounded, but you have to make sure of your testing methods/conditions. If you don't control the methods/conditions properly, you can end up going down a rabbit hole. Been there. Done that. Many years ago I lost the fuse for the parking lights/gauge lights. In tracking down the short, I first guessed that it was probably around the gauges, and after unplugging the speedometer, the short went away. My method was flawed as the positive and negative wiring from the speedometer affected all of the gauges downstream. After realizing my mistake (and wasting about an hour or more), I resumed my search with a better methodology only to find that the positive wire for the light by the defroster switch (74 & later) had become detached from the socket.
In other words, make sure you aren't shooting yourself in the foot.