More Progress,

I swapped the distribution block and rebled the system and still have spongy pedal. While bleeding, I noticed that the drivers side rubber brake hose has more than noticeable movement when the brake pedal is pressed. No other rubber lines move when brakes are applied.

I blocked off the passenger side front brake line, leaving the driver side attached to the distribution block, still have spongy pedal.

I then plugged the driver side line at the distribution block and hooked the passenger side up and rebled. Voila... good pedal!

The problem is looks to be the driver side caliper and/or hose. I have a new caliper and hose on order and pick it up tomorrow morning. I hope this finally does the trick...