How I got mine to work
I had exactly the same problem. Squishy Pedal all of a sudden. Got brakes bled, no different. Did calliper seals on all corners, same squishy pedal feeling. Next was master cylinder - you guessed it, same squishy pedal. Was at a loss as next up was the option of braided brake lines. No thanks as they are over $500 installed in New Zealand!!!!
Looked at this thread Saturday lunchtime and saw what Brett_jjj had said in a reply: "If you bleed the brakes, and still find that they are a bit spongey, try locking up the brakes a few times on grass or gravel, which will activate the ABS modulator, letting any trapped air through, so it can be bled out"
I did this on the road straight after I read it, slammed brakes on at about 50kph. Pedal straight down no ABS activation. Tried again ABS kicked straight in, but pedal felt better. Did it a 3rd time and hey presto!!! ABS on straight away and pedal is now ROCK SOLID!!!!
Looks like is was inside the ABS module as you said. Been driving today and pedal is fantastic!!! No need to re-bleed the system.
So thank you so much guys for all your input. I may have spent around $600 doing everything but you saved me another $500 so much appreciated.
You guys ROCK!!!!