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Typically, "proceed" means from now forward, not from before to now, but LSAC uses the latter meaning in some of its questions. In other words, it doesn't mean to ask how the written stimulus proceeds from the last sentence forward (my understanding of the meaning of the term "proceed"), but from the first to last sentence. Does anyone know for a fact if this usage is consistent throughout all LSATs?

This is a fairly typical phrasing for a "Method of Reasoning" question. All it is asking is that you follow the reasoning of the argument through from the first premise to the conclusion. Generally, it's asking you to differentiate between the premise and the conclusion and then identify how the argument proceeds from those premises to the conclusion. In this context, proceeds means exactly what you think it means.

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