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Booster going out usually gives a hard pedal. I'd be looking at master cylinder piston seal issue. Brake fluid will bypass and give a pedal like what you have. Now I'm assuming you don't have fluid leaking onto the ground somewhere
Brake fluid doesn't disappear for no reason, where did it go? Some fluid drop is normal for brake lining wear. Its common for the master cylinder to leak into the booster and the brake fluid gets pulled into the engine and burned. The rubber in the brake booster cannot tolerate brake fluid and it can't be cleaned as mentioned. I suggest removing the master cylinder and inspecting.
For the rotors, pads, booster, and master cylinder, I'll have to check if I have single- or dual-piston front calipers (GVWR of 7100, so probably dual..). Might convert to F350 dual-diaphragm booster and appropriate M/C.
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