Front disc brakes not releasing

OP never gave us a reading on the dimension of the rotor so we'll never know if that might have been the reason. Getting a follow-up is helpful information that could benefit another person some day.
 
Just going on a hunch here, but I think you may be using a Speedway Motors kit with the 5 1/2" bolt circle rotors. Those rotors are shown as 1.200 nominal thickness and the GM calipers you are using are for a rotor with a thickness of 1.050. I wonder if the extra rotor thickness is just great enough for interference even if the caliper pistons are retracted completely; when the anti-squeal pads were removed it may have helped the clearance issue. Could you mic your rotors for curiosities sake?
I had quite a puzzle installing a disc brake kit from CPP on my F100. I could barely get the pads in using a set of turned F150 rotors- way too tight. I was using GM calipers for a !985 Chevy pickup. I called CPP tech any found I needed the calipers from a Chevy pickup with HD Brakes! Now all is ok, I guess, because the truck hasn't been driven yet. It would have been nice if the instructions would have stated to use the HD calipers. They are about 1/4" wider than the standard calipers.
 
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