Thought I'd circle back with an update after thinking all was well.
After the latest bleed, post changing the calliper seals and pistons, all seemed to be well aside from.sds being closer to the disc than normal.
Over a week or so the pistons retracted less and less, dragging the pads on the rotor. Bummer.
After some kids vandalised the bike (nothing major, just pulled off all the bits like end plugs and other covers, I had to do some work so added sorting the brake to the list.
One piston seemed lazier than the other so took it out, cleaned and re-lubed with more hunters, put it back in, much nicer.
With the system devoid of fluid, the lever felt notchy when pulled so set about taking it apart to see what was what.
Bingo. The outer seal under the c-clup.thing had been put on backwards and wasn't fitting properly. There was a build up of white gunk where I'm guessing fluid and air etc were meeting and making the gunk.
Replaced the seal with a new one (inner seals were fine), refitted it all, re-bled and boom, brake works a treat.
Oh how I wish I'd done that check before. More frustrating as I'm pretty sure I rebuilt the other lever as it was sticky and did all the seals as the line had been removed so didn't have to worry about fluid etc.
Note to self. Check everything, don't assume all is well just because it looks good.
At least now my 12 year old has some nice brakes that work.