If you want to test the piston in place, (this will be a bit messy) just take the two hoses off the piston and use air. You might want to disconnect the ram, to allow it to move freely. If the ram movies in and out with the air then you will know the issue is not in the ram.
As I stated before, my best guess would be one of the valve spool seals has blown. Even if you just replaced the seals, that would not be a surprise, as the the design was weak, and there is a good chance they have been sitting on a shelf for along time. I initially replaced mine with a set of original seals, that I bought on line. Hence the reason I went with a newer design seal, that also stops the leaking. Remember this was the first year for this style of power steering. Lincoln had power steering previously, but that was a different system.
What I love, is that the return hose to the reservoir, is the same size as the power hose. Early engineering. Yet this same basic system was used even in my wife's 1970 Cougar XR-7. (pictures with the blue oil pan)