Makes sense but observational evidence suggests it must be a vapor at the master cylinder/ reservoir bc "mushy pedal" is experienced, indicating a compressible substance, i.e. a gas (water vapor). Just an idea...I believe getting the fluid hot enough throughout the system isn't possible.
If it were hot enough near the wheels, would it be hot enough in the reservoir?
The cooler fluid would probably absorb whatever moisture was expelled from the hot fluid.