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I slipped up the other day and didn't get the parking brake fully disengaged. (710M)
It must have built a little heat and started grabbing harder as it started to bog down and brought it to a stop a couple miles down the road.
I realized after a minute on the side of the road that the lever was still pulled out about an inch.

Played with it a bit and got it to properly disengage but now the brake still wants to grab periodically with the lever fully disengaged.
Never had any issues out of the parking brake prior to this incident.
Everything moves as it should (handle/cable/lever on the rear) but it still feels like it dragging at times.

I wanted to know if there could be something else going on before I tear into it and do a proper adjustment.
Any suggestions?

I would try disconnecting the brake cable at the rear behind the left rear tire (with the parking brake released). It's just a clip and pin. Tie the cable up out of the way and try driving it again. If the brake still drags than the brake itself needs attention. If no dragging than you just need to adjust the cable length per the manual.

Good luck!

You may also want to adjust the switch for the light that tells you the brake is engaged. Could help to alert you there is something else to do before you start off driving. Be sure the bulb is not blown as well.

And I believe the brake should be fully engaged with about 3-3.5" of pull on the handle; if yours had less pull than that, then the brake might not be releasing as far as it should.

I had nearly the same experience today. Except you didn't mention the smoke! It appeared that with all the sand and grit from off roading I have done this year that the mechanism was balky after I released the brake. A quick spray of some penetrating oil and a couple taps with the tool box hammer seems to have freed it.
I'm not optimistic about the discs in the brake now...

Other than it being a PITA to get it all apart the parts (shoes/disks) are not extremely expensive.