Thank you. I'm not a mechanic and you are the first to mention the word "honing." I'll look into that as an option... or I'll just buy a new master cylinder. Sadly I've spent close to $70 on two kits with the shipping.
Bad seal? Can't say. I have no clear instructions or pictures on how this is supposed to be assembled. I only put the new parts in the way the old parts came out.
Not sure what kind of a seal is supposed to be there.
Pits - I cleaned it and there are likely some small pits.