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Clutch depressed is the correct bleeding position. Also, the output for the clutch line is the one that comes off the side of the reservoir, whereas the brakes are fed from the bottom output. You do have the side output below the fluid level at all times while bleeding? I know it took me a couple of bleeds before I got all the air out of the clutch line, but not as much as you describe.
How about giving the brakes a quick bleed and then trying the clutch again? Failing that, my guess would be a bad slave if the brakes are working properly. (And it really is just a guess!)
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'99 black 986
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