Ok so this is what happening now. Wheel is spinning but still is rubbing on inside, the brakes are installed, and they do release and lock the wheel when i press the lever
i did force the pads apart with the flat head already

so someone suggested to bleed? how do i go about bleeding if thats a way to fix the problem?
or would i just ride the bike as is and it will fix itself?
suggestions? thanks

Yes i think what i did and did not know to do or not to do
i did squeeze the brake lever when the wheel was off the bike, didn't know that was a no no with Hydraulics
so i look forward to a suggestion and solution on this