I don't think this is correct.
Plugged both ports with fittings, put in the vice and can easily push the cylinder in and out with a screw driver and see steady line of fluid pushing up into the port of front and back.

if you plugged the ports and you had it bled correctly you should not be able to push the rod in at all. It should be hydro locked.

as to stumpy's comment, if you can pump the brakes and the pedal comes up, that would indicate adjustment issues, but it never hurts to check. It might also resolve the low pedal issue you see.

but I am with a bad master, even if it holds right now.

I used to have one that the rubber cup had a weak spot and it would fold sometimes allowing the pedal to go to the floor. But if I hit the brakes just right it would hold for a bit.