I think a lot of us have had issues bleeding clutches on a W123. The method I always use is the oil can method. Reading what you wrote I'm not sure if you tried that method yet.
Simply get yourself one of these as well as some tubing to connect the can spout to the bleeder valve on the slave and fill the can up with brake fluid of course. You will be reverse bleeding the system from the slave and then fluid will travel through the clutch hydraulic system into the brake fluid reservoir so drain a bit out of the reservoir first.
If you notice the slave valve leaking, pull it all the way out and wrap some Teflon tape around the threads, making sure to keep the small hole in the valve clear and free of the tape.
Put it back in and hook up your oil can and keep pumping. I usually do a bit of pumping, close off the valve and take a little break and then go a few more rounds. It has worked for me and many others.
Like I said above, I can't tell if you tried that method yet but this method has never failed me.