Well after letting the PB Blaster soak for a while I went and tried it again. I gave it a good 10-15 hard tugs and it finally burst open.
Inspecting the latch, it looks ok. In fact, the passenger side looks worse (and it works perfect) I took a wire brush to it, and also sprayed some silicon lubricant on it. After I shut it, it was the same way. I had to give it a good 5-10 hard pulls. Even after opening the door 5 times, its the same way. I don't see whats causing it to bind up. Pretty frustrating, but at least I know it does open if I need it.