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Brake fluid absorbs water
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This is true, to a point DOT 3 and 4 will absorb water up to 3% volume as these are glycol based brake fluids. They also have corrosion inhibitors in the mix but as glycol their effectiveness only lasts so long. On the other hand DOT 5 is silicon based and will not absorb water, it will actually repel it!
Besides water, the other contributor to brake fluid failure/contamination is HEAT, heat will affect rubber hoses and seals causing them to break down. When the rubber material starts breaking down its when things get nasty.
Another form of contamination is petroleum based products such as oils and greases. It only takes a VERY SMALL amount of these products to completely contaminate brake fluid.
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05 3500 QC 4x4