If Scirocoboy hasn't found the problem by now, he probably never will.
The hissing sound (air leak) sounds like the vacuum line running from the intake manifold to the brake booster unit has failed; however,
If there are no leaking calipers or wheel cylinders then without a doubt the internal seals in the master cylinder failed.
Solution - new master cylinder and bleed, bleed and bleed.
Owned and daily drove a 1982 Scirocco for twenty years and 220K miles before retiring.
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