Surely brake fade would not cause the pedal to go to the floor?
This is exactly what brake fade does! Ask anyone that’s tracked cars hard. Fluid gets hot and things get spongy in a hurry.
I would suspect that the bad adjustment overheated the drum, which then weakens the entire braking system. Have an unassisted like in the morgan and you’re close to the floor under normal conditions, the threshold to hitting the floor can be minimal.