I'm planning to install my first vinyl plank floor. I wanted to cover old linoleum, which partially covers the 3/4" sub-floor, and there is the height-difference of about 3/32". The vinyl plank flooring I've selected has padding (~ 3/32") also. What should I do for the height difference? See image. Any guidance greatly appreciated.
That looks like ceramic floor tiles not linoleum, best all stripped up then ply and or screed all of it also best measuring in millimetres not inches as anything you'll buy will be metric not imperial
From that view it looks like cushionfloor but the design looks are those self adhesive tiles. Either way, pull them up! Then ply with 6mm at least.
That looks like ancient cushionfloor from the seventies or eighties which used to contain about 70% asbestos in its understructure. If you know what asbestos looks like, scrape a bit of the backing away and all will be revealed.