Tell me whats wrong with this pic and how to fix it

Yeah, the booster fluid will drain out that way. That is what the tape is for, to keep in the booster fluid.

Thats not far from the truth. I had a Mazda pickup (properly badged Ford Courier) that sucked brake fluid past the rear M/C piston into the booster until it was full. I couldn't find out where all my brake fluid went until one day it finally got the the level where the intake sucked some in and white smoke was billowing out the tailpipe. It was FULL of fluid and my brakes sucked!