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According to reddit its the effect tiny tiny bubbles still in the system.
Not just according to Reddit. Try pumping the lever a lot with the bleed cup on, usually brings bubbles to the to top, can also strap the lever down hard for a while, tapping the hose a bit whilst doing both helps, if no good then try bleeding again with the pistons out a bit then repeat lever pump stuff.
Apparently the free stroke adjustment would just have let me increase lever pull rather than decrease. According to reddit its the effect tiny tiny bubbles still in the system.