Thank you for the follow up.

Bad, damaged or improperly installed pistol seals are the most logical explanation.
I asked because I have a very similar problem and short of blaming the master cylinder piston, I have blamed and ruled out everything else. (bled the system twice)
Actually, one way to confirm it would be to put the original OEM master on it and see if it works flawlessly.
So I was trying to learn my chances from your situation and it seems like I might actually have a dud of a master cylinder. No surprises with Chinese QC. It seems to be hit-n-miss these days.
Thanks! And glad that your problem was relatively easy to solve.