The linked video shows a possible path for intermittent brake fluid leakage that, if it occurs, might explain your symptoms, and perhaps why the "spongy" pedal feel is not felt when the parking brake has been applied.

 

Thanks for this. But in my case, I carefully inspected and cleaned all the parts when I changed the rotors and I haven't seen any leakages. The calipers, front and rear are completely dry. And have been dry even before the rotors change. Thanks for pointing that out though!

 

Thanks for these. I will do all that tomorrow with my mechanic and report back.

 

I confirm that after techstream brake bleeding (abs included) the pedal is not spongy anymore and sinking is gone. The one issue remains, pedal is low, at about half distance from top. But the braking is good. Thanks everyone for your help!

 

Good to hear!