The following is not advice! Consider it for entertainment purposes only! Propane is dangerous, as is cutting open used fuel tanks of any type. Do not attempt.
/warning over
I work for a company that has roughly 30,000 propane tanks on lease for business and residential use. These range from 120gal to 1,000gal tanks.
We rehab our own tanks, we also cut the domes off scrap tanks to repurpose for firepits. When the occasional 1,000 gets scrapped, they're cut in half lengthwise and turned into giant BBQ's for events.
All this being said, for tanks that will be rehabbed, we run them down to empty, hook them up to a special vaccuum pump (that also runs the exhaust through an orange scented chemical to reduce the mercaptan smell) for a 15min cycle. They then sit overnight and are tested again in the morning for vacuum. If it's still holding, it's straight into an industrial sandblasting cabinet. Steel shot strips 30 years of rust and paint off in a 4-1/2 minute cycle.
They get removed and primed immediately.
Tanks that don't have vacuum either have a bad valve or gauge (which gets fixed) , or they still had residual gas which vaporized and built pressure. Either way, they get put on the pump for a second round and then into the blaster if they pass the test.
Tanks that are getting cut get emptied to no pressure, all valves/gauges/vents are removed and replaced with pipe plugs (sans one).
Tank is then filled to capacity with water (and a splash of dish soap added) until 100% water filled. Tank is then fully drained, all plugs removed, and then inverted and left to sit (propane vapor sinks). After a minimum 24hrs of rest/open air vent, they're tossed on a bench and cut with a plasma torch.
We've never had an issue with this system.
When I take a tank home for myself to use, I forego the vacuum steps and the water alltogether, but I do remove all valves and let them sit for several days (usually 1week or more) inverted with all the valves and plugs removed to vent. I've never even been able to get a "pffft" of energy holding a lighter in an empty bung after this.
Propane boils at -42F
It vaporizes quickly, and doesn't seem to leave a residual in the pores of the steel.
The real key is either use water to displace where any gas can reside (the propane vapor is lighter than water and is therefore forced out the top when the tank is filled with water).
Otherwise, the goal is to open any low spots so the propane vapor (heavier than air) will vent out the bottom of the tank.
Combining both is just extra safe behavior.
For what it's worth, I'd cut open a propane tank with a torch that was never filled with water and never put under vacuum (just left venting, all valves removed) before I'd cut open a used diesel tank that was BOTH filled with water then left to vent. M And I'd surely never use an electric power tool to cut open a tank that is filled with water!
Again, this is not advice. Proceed at your own risk, and all that other safety advice!