That model number is incomplete, did you get it right off the appliance's model and serial number tag? That is the only reliable place it will be found. The fancy name of the front of the appliance means very little.
You can find tips for locating the model and serial number tag on your appliances in the 'Repair Parts' section of my site linked below.
** I've removed the piston/nut assy. The rubber gasket seems like it's starting to decompose (gritty) but isn't obviosly damaged. **
If the seal is deteriorating, the part needs to be replaced.
** I pressed it closed to see if it can hold water and it does not because there is actually a tiny notch in the plastic body where it makes the seal, which allows water to bypass the gasket. I'm wondering if this is normal or not. **
You can see a new 'check valve' body at this link. Maybe you can compare it to yours?
** Any way to prove/disprove if this piston is not functioning properly? **
I'm afraid I don't know of any test procedure besides a visual and manual inspection.
** When it's done, the base is still filled with water and the dishes are dirty. **
If the dishwasher isn't draining, it won't be able to clean well. Have you checked to make sure there are no blockages in the drain line?
Some models also have a secondary pump. That pump could be malfunctioning or its 'check valve' (about the size of a nickel) in the exit port of the pump could be defective and allowing water to drain back into the machine when it stops. Are you able to tell if the unit is just not draining or the dirty drain water is re-entering the tub?