I guess I would want to know if the master cylinder piston was returning all the way to the fully relaxed/brakes off position...

If you were to remove the brake actuating rod from the pedal is there still tension on it from the internal master cylinder spring?

And what about the brake components? Master and slave cylinders and the shoes... are they new or reconditioned or are you cleaning things up and getting them to work?

And remember that there are four adjusters to each brake assembly.....

Yes I have adjusted the master cylinder push rod there is no more adjustment left in it the adjuster is bottomed out and I tried both top and bottom adjustment cams on the front brakes its only the front brakes that are affected.

Are the rubber hoses new? One might be swollen inside or otherwise blocked allowing fluid to pass under pressure but not allowing it to return..

Just an update when you get dragging brakes and your pedal looses its travel back the adjustment of the push rod off. My problem was the piston was sitting over the bypass hole in the reservoir preventing the build up of pressure from the expanding brake fluid to escape into the master. If you look how the manual says to adjust the push rod it says to only have a half inch of freeplay on the pedal that doesnt work your supposed to have a half inch of freeplay BEFORE contacting the piston so I adjusted the pushrod so it had just enough pressure to hold it into the divot in the back side of the piston. I have a couple inches of travel in the pedal now but no more dragging brakes and it stops good as expected for the technology of the time it was manufactured.