Having stripped down the master cylinder and reaction valve the main culprit seem to be sediment, there was no sign of the seals breaking down just a lot of debris which I presume must have allowed the fluid to bypass the seals. It makes you wonder where it all comes from. The original brake reservoir did contain a filter of which the new ones do not, but the sediment was either too fine or was produced after passing through the reservoir.

Looking from rear of the master cylinder internally towards the reaction valve.

Master & reaction valve showing sediment on seals.

Reaction valve cover showing debris and sediment at lower exit tube.

Brake reservoir looking down showing filter and sediment.