Talked to service at A and S bmw dealership in Roseville about the problem and they have heard of this before. Has to do with quick altitude change and, I assume, the inability of the master cylinder ventilation system to cope with the quick atmospheric pressure change. And of course, heat in brake fluid from semi continuous braking. Did not mention water in the brake fluid. Suggested replacement of master cylinder.
Out here on West Coast, we have continuous downhill grades which maybe some of you have never or seldom ride. I do most of my riding either in the mountains, up to 11000 feet and down in the summer. My RD350 I have ridden much harder down steep grades with no such failure. Didn't have a passenger but RD350 has only one brake disk, not 2 like bmw.
Holding front brake on for a mile or 2 while driving on a flat highway should heat brakes up to higher temp than what was encountered on my trip. Be interesting to see if it repeats.