Sounds like you still have air in the system. When you bench bleed the MC, what method did you use? Recirculation or plugged-port or both? Partially bleed MC's tends to be the culprit most of the time IMO.
If you apply the brakes and hold steady pressure, does the pedal drop at all over time? If so, then there may be an issue with the MC or a loose connection somewhere or a bad seal.
Tobin
KORE3
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