This is still ongoing after 3 months. The master cylinder has been tested and come up good. I'm going to bite the bullet and order a TRW brand one at double the cost of the eBay item. Fingers crossed.
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this happens if you dont setup all the clearances correctly.
the issue is generally in the MC to booster freeplay and the pedal rod to the actuation valve.
if its an old MC and you have a leaky front piston seal on the MC then the fluid recirculates under assited pressure as the second piston closes up on the first one the fluid then goes back up into the MC via the fill port of the front piston.
cool huh?
The Disco is finally mobile! After being bounced around by a bad mechanic, getting "experts" involved, spending money on having the master cylinder bench tested and finally finding a mechanic that persevered, after 4 months my brakes work again.
As sierrafery and others suggested it was the master cylinder. I replaced the unit I bought from 4wdindustries via eBay with a Bearmach unit. Problem solved, lesson learned.