Pump the lever a few times to build up the pressure, then tie it back to the throttle grip and leave it overnight. See what it’s like after that. Might not work, but worth a try.
Providing the system is all serviceable. You've got air in the system, plain and simple. I see a lot of this sort of thing owners utterly frustrated after DIY of their brake system. The standard set up doesn't help either, a lot of right angles. These help to create and trap micro bubbles, tying back the lever will help but only to a point.
im guessing you mean in the T piece ? im sure you are right , air somewhere !
dont open it- just let it settle - brake fluid is hygroscopic (i think right word) so it takes in water from the air humidityyou keep saying not intentionally (dont let your kids carry the bottle lol)im gonna stand by the brake lines need replaced they take on UV damage and repeat putting under pressure can give spongy brakes by them expanding under the line pressure as they degrade.
i take it if you decide to change to braided brake lines , that you still have to use the T piece splitter ? the master cylinder banjo can only fit one banjo not two? unless there is a conversion kit , so you can go directly to the calipers with each line ?