If the oil seal in the break housing is leaking it will cause the break to grab with the slightest touch. If the breaks are adjusted so that there is little motion needed from the foot petal to engage the breaks, it may be enough to cause the break to grab in normal operation. Does not sound like anything to do with the rear end unless a bearing is out. That should not happen unless it has been run low on rear end oil. I would take a look at the break before I opened the rear end. Since the engine is sleeved, fixing the compression problem is not a monster job. Replace the sleeves and pistons and rebuild the head and you are back in business.
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