I am trying to prove this claim, which seems true to me, in the process of trying to prove that $p^{n-1}$ divides ${p^{n-1} \choose k}$. Besides the conditions stated in the title, I have already proven that $p^{n-1}$ is strictly larger than $k$.
This has been my final obstacle. It is simple enough with just $p$, but the fact that $p^{n-1}$ is not prime for $n>2$ has made it difficult for me. I'd appreciate any insight.
You need to use the Fundamental Theorem of arithmetic :
In particular, when writing $$k!=1\cdot 2\cdots k,$$ if $p^{n-1}|k!$, then the product must contain at least $n-1$ factor $p$.
Now the number of times $p$ appears in $k!$ can be computed by the following formula : $$\left\lfloor \frac{k}{p}\right \rfloor + \left\lfloor \frac{k}{p^2}\right\rfloor +\dots +\left\lfloor \frac{k}{p^{n-2}}\right\rfloor .$$
For a justification of this, see this question (and notice that I can end the sum at $\left\lfloor \frac{k}{p^{n-2}}\right\rfloor$ because $k<p^{n-1}$).
Thus the number of factor $p$ in $k!$ is less than $$\frac{k}{p}+\dots +\frac{k}{p^{n-2}}=\frac{k}{p}\left(1+\dots \frac{1}{p^{n-3}}\right) =\frac{k}{p}\cdot \dfrac{1-\frac{1}{p^{n-2}}}{1-\frac{1}{p}}\leq \frac{k}{p-1}\leq \frac{k}{2}<k\leq n-1.$$