What am I missing????
I've been through all of the system. The only thing I haven't done is #1 fit some new pads, the pads I have in the bike now are only halfway down & #2 try some different discs.
In Whitby yesterday I had to park on the pavement near the Whistlestop cafe because the bike park section was full. (Stig might know where I mean) When it came to roll the bike backwards off the pavement you can feel a slight resistance on the front wheel as though it's not rotating freely enough.

I had use your more leg pressure to pull it backwards.
On my way home I called at a friend of mine (Alan, who's also a biker) who runs a garage/MOT business. I told him what I've been doing recently with this job on the brakes and we lent the bike over on its side stand and he spun the front wheel and said there is a bit of binding/resistance but it's not bad and nothing to worry about, so I asked him if it would pass the MOT and he said yes. Alan thinks I'm overthinking it and I'm worrying too much. He knows I like things perfect on my bike and with it being the brakes I want them to be spot on.
Arriving back at home. I always start to clean the bike down before I do anything else. I raised the front wheel off the ground slightly to clean the brake dust off the wheel and when I came to rotate the wheel it took a bit of strength to get it to rotate it.
I'm at a loss now and it's staring to annoy me a little.
YAMAEXUP, I'm wondering whether to remove that washer that came with the kit and see if that makes a difference?
When I was bleeding the system and pulling the brake lever and cracking open the nipple etc no air bubbles were coming out of the tubes attached to the nipples.
Something else I noticed, every time I opened the nipple under pressure with the brake lever and then closed the nipple back up again it would take between 60 to 90 pumps on the lever to get any pressure back on the pads?? I have adjustable levers and it was on #1 which is the widest setting. Having to pump it that many times doesn't seem right to me.
Looking into the reservoir with the cover off, when your pumping the brake lever you can see the fluid raising at the point where its coming out of the return hole. It did squirt out a couple of times but I was prepared for that. When I let go of the lever you can see the return hole clearly. I've just been out to double check this and in fact there's two holes.
Well the weather is going to be shit for a good week or so, so I'm going to have to go through it all again. I don't think (worrying or not) the front wheel should be that hard to rotate.
I'll be back....

Bit of advice. Buy a good bed and a good pair of shoes, because if you aren't in one you'll be in the other.