And someone mentioned the collapsing brake hose. You can't see it if the hose inner lining separates and collapses. Doesn't seem to make sense at first , but it does if you know the mechanics. When the brake lever is released, the piston in the master slides back, a slight suction is placed on the fluid, the hose lining then collapses before the pistons move and the pistons don't retract.
Check the other stuff first, this isn't likely the problem, but something to check before you get frustrated and get a sledge hammer.