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Follow up on a resolution!!!!! It turns out the rotors were so thin along with worn pads that the caliper cylinder was traveling past the pressure seal. Took over a month for new rotors to come in. We swapped the rotors and then compressed the caliper cylinder back into position. Added new brake pads and bled the system. This was easier than expected- maybe 10 minutes per side to swap the rotors out and add new pads. My guesstimate is that we had lost close to two full inches of travel due to the rotor thickness. Thanks for all of the help and suggestions my friends! NEOHIO got it right! Picture of old vs new rotor thickness.