I think I've identified the problem and it is the piston ring seal, ( a metal ring). Shining a light behind the assembly while it is in the barrel revealed a pin hole between the piston seal and barrel. As I slide the assembly further back into the barrel, the gap disappears after about 1.5 inches. The parts manual doesn't specifically identify this part so I ordered a new piston to see if it is sold as a unit. To confuse matters further, the diagram in the parts manual really doesn't represent well what I have in my hands. The technical manual has a diagram that does, but it also has a couple of back up seals that ride on the pin beside the piston that I don't have. Because there is an older version of this cylinder I suspect that there were modifications made at the factory that didn't make the parts manual.
My understanding is that enough hydraulic oil is going through the pin hole to prevent the pin from retracting, but because the gap is closed when the pin is retracted, it has no problem reversing to the engaged position. My hope is that a new seal plus a cleaning of the pin bore will be enough. Worse case may involve a new cylinder barrel. For me, parts are several days to a week out. (The parts guy referred to my 570 A as a "mature grader", but the good thing is that there are a lot of them still out there working for people who need a reliable machine.)