And, have you confirmed the small return hole in the MC reservoir is clear? If the fluid can’t cycle, it won’t build pressure.
I took the master cylinder apart and used 110psi compressed air through it.
Here's a question, with the reservoir cap off, if you yank the brake lever back quickly should it shoot brake fluid up into the air? I've heard some people say this means there's still air in the system namely the small return hole mentioned above might not be clear, so maybe my next course of action is to empty the master cylinder of fluid and make extra sure that little hole is clear with a piece of guitar string or something...
This indicates air in the system somewhere. It will usually raise the fluid ("bump" the surface) if the air is gone.
Several things: those who hate these brakes usually don't understand them (like the opposite sex?) very well. Here's the best way to de-air it:
Turn the handlebars fully right, with the bike on the centerstand. This tilts the front of the master downward. Connect a (clear) bleed hose to the caliper, route the open end upward higher than the master cylinder (I tie it to the throttle grip) and crack the bleeder a tiny bit, enough to see fluid reach into the hose. Then put a piece of wire on the lever to hold it in about 1/3 to 1/2 the travel distance (to the handlegrip) and go to bed, and loosen the reservoir cap. Next day, close the bleeder screw and then slowly operate the brake in the "high" position until the tiny bubble streams that appear after each release will quit flowing. If the lines or old or the caliper was emptied (opened), this will take a while, much like bleeding a car's master cylinder without power tools.
When the tiny bubbles finally stop (some will simply vent themselves while the lever is released), swing the bars fully right and repeat to remove the air in the master cylinder itself.
ABOVE ALL - do NOT operate the lever quickly while doing this, as this causes the air to dissolve into the brake fluid and increases the time for it to separate out into bubbles that can float upward. This slow-move bleed method takes a little while, but always works.
Also: do you have the little nylon washers between the pucks and the caliper/piston? All of the post-1976 brakes had these...