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the break line was rubbing against the motor & created a hole.
Rubbed a hole in master cylinder brake lines. Stupid design
Clip that is supposed to hold brake lines to engine compartment wall was not installed, and so brake line was rubbing against transmission housing. It was rubbing so long that it eventually cut a small groove in transmission housing, and then a hole developed in brake line. I was lucky that low brake fluid light alerted me, but after filling master cylinder few times, the brakes got spongy. That was when I identified leak.
Brake lines rubbing on transmission developed a leak in the line causing the brakes to fail.