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Yep, probably was a sticking caliper causing fluid to boil. If that wheel was hot/burning to the touch while the others weren't, that caliper was seized.
Regarding the brake failure light, the piston may be stuck on one side. Some have had success by stomping on the pedal. The pressure after release may push the piston back to center. Or could try squeezing pistons into caliper with bleed screw closed so that fluid backs up and pushes piston back to center.
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1980 245 Canadian B21A with SU carb and M46 trans in Brampton, Ont.
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