I have the same as you (1999 C2500 Suburban).
I had the calipers off working on wheel bearings, pushed the pistons in and pumped them out with the pedal a couple of times to make sure they were free but didn't break into the hydraulics at any point.
Put it all back together, pumped the pedal to bring the pads into contact with the disc (rotor) at which point I should have had a solid pedal but it is soft and mushy and the pedal is slow to return.
Went for a drive and gave the brakes a work-out but still the same. It stops perfectly but the 'long' pedal isn't right.
Feels like they need bleeding but how could air have got in?
The other possibility (in my mind) is that using more pedal travel pumping the pistons the master cylinder piston has encountered a usually unused portion of the cylinder and has damaged the seal (this is something known to happen sometimes during pedal bleeding).
No external leaks - does a leaking master cylinder just leak back to the reservoir?
But, it still seems to stop too well for it be master cylinder related (I want to check this further) and, OP, in your sudden stop - do you think you could have pushed the pedal far enough beyond normal use to have done as I described?