The MC & reservoir have the appearance of a 569671 , that would be correct on a truck up to approx. manuf. date of June 1980.
This would have a Supervac unit using a manual "Test" button on the dash (this is just to check the warning bulb has not blown -Ign on).
Obviously non-functional, if it were operative and tests out correct, then if the lamp illuminates - indicates loss of vacuum or loss of fluid in front or rear lines (or both). It should be restored & shuttle valve also tested. Without a operational Supervac , there is still braking , you just press harder LoL . There could be some spongyness , esp. if the footpedal height (from floorplate) is not correctly all set up right from scratch.
If you don't have fluid weepage from the bleed at Supervac , then the spongyness is probably by-pass across worn seal set.
Hose balloon , possible I suppose , my experience is more the opposite , as hoses deteriorate they restrict and then shut off all fluid flow , first indication is when your brakes start pulling to one side.
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A problem is that the cylinder (it is Girling manuf) , you can't identify from the casting No. & the plastic or ally bracelet bench test band is missing. It is possible that it is the wrong MC - such as the one used on a 109" of same period , this had front rear flud compartments the other way fore/aft & pipework thread sizes different way - as warning not to use & cross-pipe ! This is a possibility.
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After abt. June 1980 - there were many changes to brakes , the MC NRC6096 was used , this was also rationalised so as to use on 109" with dual-circuit from same time. This is more or less identified in first blush stage - the reservoir is affixed with two Mills pins ..