This is a pretty old thread but I'll chime in anyway in case it helps.
I'm having the exact same problem right now even though I replaced everything: turned the drums, new shoes, stainless steel hoses, new wheel cylinders, etc. Everything but the master cylinder because at the time it wasn't giving any problems.
Drive the car and get the brakes to seize. Jack up the front and bleed just a spurt of fluid from one of the bleeder valves. If the brakes release it's a hydraulic problem. If they don't, it's a drum problem.
I determined it was a hydraulic problem on my car and was given the following advice from a Bugeye expert as the next steps to take...
"Disconnect that return spring on the brake master pushrod and have a feel for how much play it has at the pushrod clevis pin-to-brake master pushrod - the spec is in the manual but you should be able to rattle it around with a thumb and finger. If it has some clearance, put the return spring back on and then drive it around 2-3 miles again to get the brakes to start seizing. Then, raise the bonnet and check for clearance again. If there is now no clearance, the seizing is from everything expanding due to heat. Just adjust the pushrod (shorten it) about a 1/8 to 3/16 of an inch. Test drive it again and see if that takes care of the issue."