You can't un-bind a dragging front brake pad by adjusting the swingarm screw. You have to adjust the swingarm properly before you get to this point. Once it binds, you have to remove the caliper and press the piston back into the socket.
The swingarm adjusts both pads. You adjust the position of the swingarm using the rear (fixed) pad as a point of reference. It must be adjusted so that the rear pad comes to rest very close to the rear side of the rotor but without binding it.
Remember, the total range of motion of the front (movable) pad & piston is very small, because its forward movement is accomplished by the deformation of the seal. Likewise, the piston's retraction movement is accomplished not by negative fluid pressure, but rather by the seal merely returning to normal shape. As you can imagine, that's not a lot of movement.
As a result, the swingarm needs to be adjusted so that both pads need to travel as little as possible before making contact with the rotor. If adjusted properly, the front pad (when activated by pressure) will travel half of the distance necessary to engage the rotor, and the rear pad will swivel on the swingarm to travel the other half of the distance.
If your rear pad is too far away from the rotor, and the front pad has already been extruded too far out, there's no way to get the piston to retract more than the re-forming seal will allow. At that point, you have to remove the caliper and push the piston back in (open the valve to relieve pressure).
So, I recommend starting over. Remove the caliper from the bike, open the valve, press the caliper piston all the way in (which will eject fluid), and reassemble onto the bike. Replace any lost fluid. At this point, you should have a nice wide gap between the pads. Once it's all back on the bike, adjust the swingarm screw until the REAR fixed pad grabs the rotor, then back the screw off just enough so that the wheel turns freely, then maybe another 1/8th turn. Lock the screw in place. Then, pull the brake handle to move the front piston/pad into position. It should bind the rotor then release.
If not, then your front pad is not retracting, and you probably have a bad seal. That can be due to the seat of the seal inside the caliper, contamination, or just a bad piece of seal material.