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A little seepage from your hoses is not going to cause your power assist to stop working - unless you are now very low of fluid in your pump reservoir. If you are very low of fluid your pump should be making lots of noise as it sucks air and oil together.
Otherwise, I would suggest that you have a pump problem as well.
In the early 90's I rebuilt the front suspension on my 1973. Purchased everything from VB&P, including all new hydraulics for the power steering. Everything was terrific and I had no complaints.
Some years later I decided to send my steering box off to Van Steel and have them rebuild it. (They did a terrific job!) After installing it, I discovered what "power steering" was really about on the C3!!! It was almost too much, but the wife loves it...
I have seen over greased control valves act that way.
Guess I should have said if too much grease is forced in with a pneumatic gun the grease will fill the fluid area of the control valve with heavy chassis grease and the valve will not move easily and therefore will not call for the pressure to be sent to the cylinder.