Is this sound? If you squeeze the brake lever and the wheel is locked that means the piston is not retracting. If you were to crack the bleeder and fluid shoots out, that means that the MC return hole is blocked.
Does that test hold water? I'm thinking if the piston seal wasn't springing back, the fluid pressure behind it still can go back to the MC once you release the lever, so fluid wouldn't squirt out the bleeder. Correct?