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Goals: Most likely California big law, transactional or IP work. Then transition to PI/gov work. Not really decided on NorCal vs SoCal, but the idea of going to the Bay also seems appealing to me. Not from California but attended undergrad there.

Finances: Full tuition at UVA (Karsh-Dillard). $25k/yr at Berkeley (working on negotiations but no word yet on if this will increase). I also have Michigan $120k, but given that they have say they do not negotiate on Dean's Scholarships, I am not as seriously considering this offer (I have no special preference for UMich over UVA for instance).

Fit/Grading: Originally I would say a strong preference towards Berkeley's location and the community (there is the perception of at least greater racial/ethnic diversity?). There is also the appeal of the more "relaxed" grading system. However, as I've learned more about UVA, I've gotten a much better feeling about the community and collegiality of the school and have heard great things about the learning environment. Just not sure how Charlottesville will feel for me compared to the Bay, especially being used to the big city California undergrad experience. I also know there is a traditional system at UVA even though the median is somewhat high. I know that both schools do fairly great in employment outcomes, but I am just not sure, all things equal, if I will be at a disadvantage/it will be harder to get a job at a more prestigious California firm with the traditional GPA of UVA. Some people have also told me that, since a UVA grad is more "rare" in the market, that could even be an advantage? Any thoughts are appreciated.

Personally, I'd pick UVA. It may not do as well in Cali as Cal, but it'll do fine, and if you want and network properly, you'll get biglaw in Cali. For the cost difference UVA is just the right pick.
If you can get Cal up to be at least within striking distance (i.e. 20k total cost of attendance) I could see an argument for it. But I think you're looking at like a 100k difference and Cal just isn't worth that for a Cali advantage.

I also think UVA wins out here. If Berkeley comes closer on price, you might get to a point where you can consider paying for the location, but that's not worth ~$100k of extra tuition and CoL.

Berkeley's grading system is only superficially different from its peers', and it has downsides (you could write above-average exams in all your classes and still get straight P's). I wouldn't consider that a positive nor a negative.

UVA no question. Your career goals put Berkeley into second place though. Just a note--I was accepted to Cal several years ago during my cycle and I had a very hard time negotiating, as did a lot of other people my year, even though I had larger scholarships from NYU, Michigan, and Duke. It appeared that they just didn't respond to people whom they didn't want to negotiate with. So if you've been waiting to hear back from them about adjusting your award I wouldn't hold my breath.

Based on COA, Virginia is the clear choice.

Based on your career goals & lifestyle choice, Berkeley is the clear choice.

The issue then becomes one of personal priorities.