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I wouldn't pull the warning switch. Just check for leakage.
The warning switch is plastic. Those threads can get damaged easily and then you'll be looking for another switch.
The problem is probably at the caliper. The pistons may be retracting too much, requiring more pedal movement to engage. Perhaps a rubber dust boot is snagged between the piston and brake pad giving the pedal sponginess?
You could try removing the metal (anti-squeal?) plates to see if they're making things springy.
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1980 245 Canadian B21A with SU carb but electronic ignition and M46 trans in Brampton, Ont.
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