Opinionated post alert - comes from a well-meaning place tho... 
To be frank, to me the whole idea of practicing like that seems misguided
(and usually the results sound like "Jazz degree playing"... which is a far bigger crime against humanity than even Muzak or Kenny G.)
The secret is in the individual pieces, and in singing.
So I say ditch the guitar, and learn a single piece until it is as familiar to you as your drive to the supermarket. (Meaning, you don't need ANY directions, any theory, any crutches, you know THE MUSIC by heart, backwards and forwards.) As you work on the piece you sing to it, sing the melody, sing held notes like backgrounds, sing solos, etc.
Do this with ONE SINGLE PIECE for as long as you can stand it every day for at least two weeks. Once you know the piece AD NAUSEAM, bring the guitar in, but you merely duplicate your singing. Don't worry about keys and note-names, like you don't worry about directions on your drive to the supermarket. You just turn. And don't allow your hands to do stuff because they've been conditioned to move there. It ALL has to come from the singing.
Once you got the first piece like that completely under your skin, move to a second one, etc. After a hundred pieces (you'll get much faster in absorbing the music with each piece...) you will be able to hear *everything* in *any piece* of that style, forever. And you'll *happen* to know the theory but it won't be the source of your music. It'll be to your playing what your knowledge of English grammar is to your day-to-day conversation in English - an *analysis tool*.
Academia is killing music, so whatever you do, don't do what the Jazz schools or composition departments do... it's all in the music, and ONLY in the music.
My very opinionated opinion...
