You have air in the clutch slave cylinder . As old as it is I suspect you now have a bad master cylinder.
Why? Because over-stroking the pedal when low on fluid tends to **** in all the dirt that accumulates in the bottom of the system and damages the hardened old seals.
The clutch slave cylinder is on top of the bell housing and it has a 7mm across it's flats, bleed nipple.
This is a two man job without a pressure bleeder. Have someone press clutch down and you open slave bleeder, close bleeder and lift up pedal slowly.
Repeat, topping of the fluid reservoir, until firm pedal.
The brake reservoir also supplies fluid to the clutch. If the fluid gets low or clutch leaks, the reservoir is so designed to still allow fluid for the brake system.
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Obtain a new reservoir from VW. If : NLA...No Longer Available. Try Parts Geek or find another oe parts supplier...maybe Cardon through O'riellys might help.
Not a difficult job...drain the fluid from res' and pull off res from it's master cylinder...it's held on with rubber seals. Need to pull quiet hard so watch for obstructions when it finally lets go !
Letting a shop do it ?..depending on area....around one hour labour plus the part and fluid.
If it is just the hose that is bad you can get a length of compatible hose from an auto parts store....just tell them you need brake fluid compatible hose and the internal diameter.
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