Slave cylinder leaking on exhaust

[ecraig8]

I have a 88 carrera with a possible leak in the slave cylinder. The pedal does not return at all times but if I pull the pedal up will then work as normal. I don't understand how this can be with something hydraulic but reading other posts, it does look to be possible. I would think it's 100% working or not working with nothing in between.

I also now have a fluid leak on the exhaust pretty much at the case halves and/or at the base of the oil cooler. Both seem to happen at the same time. I know fluid can travel some weird paths and wonder if anyone else has had a slave cylinder the leaked in this same area.

If so I have just one problem to fix. If not I have a slave cylinder to repair and maybe some oil cooler seals.
The fluid burns off on contact with the exhaust so I can't tell if it oil or brake fluid. Kinda feels like brake fluid but not sure.

Thanks!