Handbrake doesn't work. Common?

Awhile ago, my handbrake--2006 V50 T5 AWD-- went from normal operation to a condition in which the handbrake lever had to be pulled to nearly full extension to activate the parking brake. I then had a full brake-system servicing done--new pads and rotors all around, removal and bead-blasting of corrosion on the caliper units, brake-fluid flush, adjustment of the handbrake lever--and now the lever pulls firmly to normal extension, but there is absolutely no braking action.

Pulling up as hard as I can with two hands, I can get about nine clicks out of the ratchet, but even on a very slight downgrade, the car still rolls forward.

It feels as though the handbrake cable is simply frozen. Has anybody else had this problem? Does it sound like something that can be solved with liberal application of penetrating spray, or should I just go straight to remove-and-replace of the entire handbrake cable assembly?
 
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