I just finished another bleed, including cycling the ABS with the VAG-COM, and the problem remains.
I did this and the pedal is still firm.
I repaired leak in the booster line a few months ago. I found it while pressure testing for a boost leak. I did another leak test tonight and everything seems fine.
Funny you mention the ABS because its been in the back of my mind as the possible cause. The sound made while the pedal returns to the extended position is very similar to sound the ABS system makes when its cycled with the VAG-COM.