I removed the master cylinder from the firewall and disassembled the push-rod assembly and pistons from the master bore itself. As I removed the pistons, small microscopic aluminum particles were visible in the fluid, and there seems to be an imperfection in the wall of the bore as well. You can definitly see traces of the piston boots sliding on the bore walls.
One picture shows a nick in the bore wall, and the other picture shows the scuffing on the bore wall. Logic would say rubber alone can't do this, so maybe the fluid with particles present is creating the scuffs. The gouge in the wall and no other evidence on the rods leads me to think this has been like this from day one.
Considering I lost all pedal pressure with travel 100% to the floor, and the inspection of the cylinder bore, it seems most logical to contact Wilwood.
I'm sooo "thankful" this did not result in a wrecked car or injuries.
A big 'thumbs-up' to Tobin, whose customer service always goes well beyond the purchase of his products.