I love the title of this thread. Once again, we have a clueless Harley dealership. At least this one admitted it.
A motorcycle brake system is pretty simple, in the overall scheme of things, and the basics have remained the same for decades. Perhaps you need to find a much better dealership, or even an independent since I'm pretty sure a 2011 model would be well beyond the factory warranty by now.
The system is being pressurized, which applies the brakes and trips the brake light pressure switch. That is why your cruise won't engage. There is a pretty short distance from the master cylinder to the caliper, and if this dealer can't figure out which component is pressurizing the fluid, may the lord help them if someone brings them a really complicated problem. Btw, since the bike has ABS, I would hope they checked that system for codes as well as proper operation and routing of the brake lines away from heat sources. The 2011 model has separate systems for front and rear ABS, so a fault in the rear wouldn't necessarily affect the front. Whatever, they need to follow a logical diagnostic path, not just replace one part here, another part there, etc. Of course there aren't that many parts involved, so I guess they could just replace everything and hope they fix it. The trick is getting someone to pay for all those parts.
Jerry