I got the old mc off and placed it on my workbench, or as my kids call it, "the kitchen table."
First, the return hole is indeed plugged. And plugged good. I'll need a tiny drill bit. It wouldn't yield to the sharper end a tiny sewing needle.
This is after much cleaning, and more to go.

Second, by blind luck I got the circlip released and the parts, after some coaxing sprung out - although I caught all the parts, I didn't catch the assembly order. Can anyone help me with that?
1. Skinny end of the spring goes in first, right?
2. Then the rubber "hat" goes over the wider end of the spring, so its flat top goes against the "propeller" side of the piston, is that right?
3. Last, what is the correct orientation of the sweeper ring that I install on the piston assembly? Should the wider side of the flare go toward the lever or the banjo bolt side of the caliper? The existing one is worn, but it looks like wider side towards the lever. But I can't follow the logic of that. (Parts fiches are a little too blurry to make out, at least from my searching.)

Thanks for any help with this part of the rebuild.
Third, there is seepage where the reservoir meets the mc. it'll need a new reservoir o-ring, and it could benefit from a fresh cup, too. I'll order asap.

Man, that was a bugger to pry off. The o-ring is pliable, but corroded. The o-ring channel was a complete mess before a laborious clean out.
Obviously, which fluid to use won't be a point of controversy

I'm hoping with the freshened mc and new black stainless lines, the brakes will cooperate so I can ride this over to DMV and get it authorized to be ridden on the street. It'll need new front pads, so I'll do the calipers and maybe fresh caliper pistons after I get plates on it. Heavy bike and treacherous mountain roads spells tip-top brakes and tires to my way way of thinking.