For what it's worth, I would discount the siezed caliper theory.
I had a sticking caliper problem on my V70 and it still braked efficiently and in a straight line. The offside brake used to stick on and sometimes applied with a snatch, but it worked.
A caliper seal/overhaul kit cured it.
If you've had intermitant ABS light showing, I might be inclined to look at the ABS pump?
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