Ok. The wheel rotates OK without pads. It doesn't rotate OK with pads.
There are a number of things that can cause brake drag.
1 Wheel installation. The brake disk is mounted on the wheel which is on the axle. The brake calipers are mounted on the fork legs. If the wheel installation is not correct then the disks are not in the correct position in relation to the caliper. That will cause wheel drag especially with new pads.
Two tell tale signs. There should be 0.7m clearnance on both sides of the brake disk as it passes through the caliper.
The left hand end of the axle should be flush with the axle hole at the bottom of the left fork leg.
2. Brake Calliper movement - they must be able to slide in and out on their caliper slider pins (when the pads are not in). Push them in towards the wheel, they should stay there. Pull them out, they should stay there. Movements should be smooth and not difficult.
3. Pads should meet the disc flat face to face, not bottom first or top first.
4. The pads should release their grip on the disc immediately the pressure is released. With new pads this may take a few miles of riding and braking until they have bedded in.
5. All 3 pistons in each caliper should push into the caliper easily with just thumb pressure. Beware - pushing a piston in on one caliper will push out a piston in the other caliper. Also pushing in one of the two outside pistons will push out the other outside piston. Prevent this from happening - I have 3 blocks of wood, each wrapped with thin metal sheet, one for each caliper for this purpose. Slip one into the caliper in place of the pads and pump the lever to lock it into position. The metal sheet is to stop the pistons from burying themselves into the wood.
The purpose of this is to make sure that the fluid can be pushed back into the appropriate reservoir. (Rear reservoir for centre pistons, handlebar reservoir for the 2 outer pistons.)
I haven't got a clue what the fault is - if there is a fault - but these are the things that I would be looking into.
It is possible that nothing is particularly wrong - but the above need checking. MY own brakes bind and squeal like mad when I reverse the bike out of the garage. It is just the light surface rust on the disk causing resonance with the disk pads. This can happen over a couple of days even if it wasn't raining when I put the bike away. The first couple of stops are viscious - I mean closely inspect the inside of the windscreen viscious - but after that they work perfectly and when I put the bike away the bike is easy to move around - (or it would be if I hadn't put two tears in my calf muscle putting the damn thing on its centre stand).
I need to fit new pads - so I would normally go out and get a comparison for you - but at present my calipers are off, my brake hoses are dangling in plastic bags (to catch drips, and the front right fork just needs fresh oil after a rebuild before I reinstall that and start on the left fork.
So I cannot help in that respect - but there is an element of english / welsh weather that has to be take into account which may be all that you are seeing. If the rotation is getting better after a few manual rotations, then personally, I would be tempted to take it for a very short ride of a few hundred yards, stop without touching the brakes and feel the brake disk temperatures. Then try using the brakes to come to a stop, then move away and stop again without using the brakes. Centre stand and check how the wheel turns manually. If it is getting easier, then be a little bolder. Ride a little further and brake harder to get the discs warm. Pull the clutch lever in occasionally to see whether or not the brakes are dragging - the slowing down will be obvious if they are. Stop and check the disk temperature after a few hard stops. Dont touch, they will be very hot. Make sure that the wheel will rotate and then ride a mile or so and come to a stop without using the brakes. They should be cold again. Or at least, much cooler.
Always be aware that during these tests that you may be riding on the edge of disaster. The point is that after getting hot from braking, the pads should easily release from the disc surface and get cooler. If they don't then you have a problem and you need to abort and get back home. If you live on a level road, then doing this up and down the road would be enough and a safe precaution.
So beware - if there is still something wrong, then the brakes will get hot very quickly and might suddenly lock up. So it is baby steps to find out whether or not it improves. And you must do all of the inspection tests first.
Don't forget to keep checking the back brake, because if the front left brake is dragging, that will apply the rear brake. That is easier to do if you leave the panniers off. Every time you brake - lever or pedal - the back brake is applied.
Front disks should be cold if you come to a stop without using the brakes after a mile or so.
Rear brakes will never get stone cold because of the heat from the engine and exhaust. But youbshould be able to keep your finger on them without losing your finger prints.
Afterthought. You may want to try this test just using the front brake lever. That will leave the centre pistons out of the tests completely. But you still need to keep checking the rear disc temp.
If that works out ok then repeat the tests using the rear brake pedal only. That test the front centre pistons only, but will operate all 3 rear pistons. You may notice that the right front disk is cooler than the left. This would be because the front right piston doesn't operate under light braking, only if the braking is pressed harder than required for car park manoeuvres.