Master loot is bugged but it seems if you leave it on FFA everyone can choose to roll (need, greed or pass). If you trust the people you are with you can leave it as such.
No its not bugged, Bioware announced long ago that this is how loot will be handled on normal mode.
There are several interviews where they mention the system as "loot bags".
And I am pretty sure the FFA thing you mentioned does not work.