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On the W123 cars (trust me I know first hand) and I believe many Mercedes from that era, the failure mode for the Master Cylinder locks pressure on the rear brake circuit. I think they designed it to fail in this manner rather than losing brake pressue, for safety, especially on roads like the Autobahn. My master cylinder failed in town and I thought both rear calipers froze. I replaced the calipers but the problem still appeared after the brake fluid was warmed during normal driving. Letting the system cool allowed the pressure to relieve itself, and I was able to drive a short distance till the system heated up again. I replaced the master cylinder (thanks MercedesShop) and haven't had any problems since.
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1976 BMW 2002- 100k
1995 BMW 325i 175k
1984 Mercedes Benz 300D Turbo Diesel- 270,000 mi
1981 Mercedes Benz 240D- Estimated 300,000+ mi Returned to the earth
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