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You know, I did pause when I wrapped that Teflon tape on that fitting but then I received it that way so I went ahead and used it. I don't think they know any more about this stuff than I do. That rubber hose alone could lead to a catastrophic failure for someone.

I swapped out most of the fittings and replaced the rubber hose with a metal brake line.

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Even if the hose failed, it wouldn't affect the brakes. It would just leak all the fluid above that point.

But there would still be fluid up to the top master cylinder so everything would work as normal.

The lid on the master cylinder just keeps dirt, debris and excess moisture out and most have an vent hole. But brakes function regardless if the lid is on or off.