They have a function. Your stock lines are rubber after the hard lines, so the rubber expands on hydraulic compression. Braided lines don't expand like that, so you get a more firm pedal feel it's supposed to help with fade.

Yeah, maybe try the brake fluid first and go from there.

I'd say get some new fluid, more aggressive pads, and braided lines. That should improve things.

The pads will probably be the biggest factor, but the fluid is due to be changed anyway, so do that no matter what.