In the final steps I've been taking to get the car ready for the new motor, I discovered a seized front left caliper. I replaced it and bled it for quite a while. No air is coming out. Upon releasing the pedal, the piston returns all the way back in to the caliper. This makes the pedal soft until the pad finally touches the rotor, then it firms up and the brakes work great. Could this be an issue with the master cylinder?
thats an issue with the caliper it self. the lip seal is sticking to the piston. when the piston moves out the seal is rolling out with the piston and then pulling the piston back in when the pressure is released. im not sure if it will brake loose or if you need to try another caliper. you might be able to try rotating the piston in the caliper to see if that brakes it loose.