Hello and welcome to the forum. 😃
Interesting problem you have there. How old are the flexible brake hoses on your car? old hoses can sometime swell up and the internal diameter of the hose becomes much smaller or closes completely, brake fluid can be forced through the hose but then can't release so the brakes are stuck on. I'm not quite sure why the brake pedal goes straight to the floor though, unless there is still air in the system.
I think you'd be very unlucky to get a faulty new master cylinder, especially an ATE one.
I had real problems bleeding the brakes on my beetle, no amount of pumping seemed to get the air out. In the end I bought a Gunsons EziBleed kit which worked a treat.
Good luck, let us know how you get on.
Cheers,
John