We've been using a "my-t-vac" with a very fine tip and suctioning out through the loosened bleed screw on the bellhousing for a few years now. One person ***** and the other keeps the reservoir filled.
We've found that the stuff gets pretty nasty, but has never caused a failure. Also, **** the fluid out of the reservoir and clean out the bottom - as a lot of black funk seems to collect there. Then refill and start flushing.
Since it is not subjected to the same pressures or temperatures, (and because for a time I had a leak) I tried thin SAE 5W-20 engine oil. Works fine, is not too thick when cold. The rubber seals can handle it fine (they handle brake fluid) and engine oil is more tolerant of water.
You are saying you use engine oil instead of brake fluid in your clutch hydraulics? The benifit is that it is more resistant to water contamination than brake fluid?
I would think, at a minimum, it would be a pain in the ass to bleed all the air out of a thick oil like that.
Otherwise, it sounds like a bad master cylinder does on brakes. Not doubting the real world experience, but is there a sign that it is the slave and not the master?