This morning I put the blind sleeve piston assembly back in and brought to temperature. No leaks, no noises.
I pulled water out with no portafilter in, again, no apparent leaks.
With a blind basket in, I pulled the lever and immediately had leaking from the following circled location:

It is just adjacent to the brew boiler beneath that red cap. I can't tell if it is coming from the valve or the lines. There is a visible bead of water that indicates the location.
This time, I had starting pressure of around 10 bars, which slowly bled away and the lever creeps up. I did make a couple of changes from the last testing. I switched to using the tank water supply and I had the blind basket full of water before pulling.