The caliper mounts on a pivot arm. Check those pivot points to see if they allow the caliper assy to swing side to side freely.
Also check that the front fender mounts to the fork on top of the the caliper's pivot bearing stay.
You should temporarily remove the caliper adjust screw and spring and push on the caliper sideways. This will push the puck back into the caliper and you can feel how easy/difficult it is for the caliper to retract. Beware of over filled master, as this is where all that brake fluid gets pushed to when the puck does retract. If too full, it will block retraction. It shouldn't take more than 5 or 10 pounds of pressure to get the puck to move back into the caliper. If more than that, find out why and correct.
When you have about an eighth inch free clearance between puck and disk, you can then move the caliper back and forth and feel if there is any resistance, bind, or bias to it's natural resting state. It should move wherever you want it freely and stay in that position when you let it go. If the hard line has been bent or eliminated the line or the brake hose may push the caliper to one side causing it to place pressure on the puck and heat up while driving.
When you are sure the puck is moving freely in caliper and that the pivot is free and unbiased, put the spring and adjusting screw back in and adjust for .006 inch clearance on the stationary pad, then lock down the adjuster. Use the lever to pump the puck back out to the disk and verify free rotation when released.
Be aware that the silicone grease is only supposed to be used as a moisture barrier for those surfaces behind the puck that are exposed to the atmosphere and water ingress. It's not supposed to lube anything reduce friction.
I should mention that some new pucks have to filed on in order to move freely and retract properly into the caliper housing. I assume this was checked before assembly.
Lastly, I have found that Brake Parts Assembly Lube works better than brake fluid during caliper assembly to prelube the piston seal.
Since it straddles the seal's dividing line between brake fluid and atmosphere, it sees both environments. It is a bit slipperier than brake fluid to aid in piston travel, dissolves into the brake fluid environment completely. And, if any of it bridges into the atmosphere side of the seal it resists corrosion unlike brake fluid which actually draws moisture out of the atmosphere to contact the aluminum and steel to promote corrosion.
Best of luck!
