What the...?

So I am stuffing my head under the steering column trying to see what it takes to install a clutch pedal when (if?) I convert my '89 740 Turbo from AW71-M46 and I find the rubber bellows at the bottom of the steering colun wet with brake fluid!

Has anyone heard of brake fluid leaking to a point inside the car from a faulty MC, or is this merely some spilage from when I removed the resevoir bottle as part of a fluid flush and change?

I think I can understand how spilled fluid would travel under the MC and booster to find a seam in the firewall mount, but could a MC, leaking internally, leak fluid through the booster to the interior?

Incedentially, despite a through fluid change and power bleeding it still takes my brake pedal about 1/3 travel before the brakes begin doing anything. I figure this is not normal, correct? My 240's both give very positive brake action at th top of the pedal stroke. I was expecting at least that from this 740.
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"Can't understand why people abort Volvos, either"