The correct statement is Option A. A only
Fluid leaking from the caliper dust boot typically indicates a worn square cut seal. The square cut seal within the caliper is designed to prevent fluid leaks from occurring. When this seal becomes worn or damaged, it can lead to fluid leakage, often evidenced by seepage around the caliper dust boot.
Technician B is not correct in stating that the square cut seal acts as a self-adjustment mechanism. The square cut seal's primary function is to contain hydraulic fluid within the caliper, not to facilitate self-adjustment.