This situation with this famous Zen master reminds me of the story of what Tara told Atisha on the eve of his marriage.
On his wedding eve, Tara appeared to Atisha vividly in a dream. She told him that for 500 consecutive lives he had been a mendicant monk and therefore not to have any attraction for the transitory pleasures of this world. She explained that an ordinary person caught up in them would be relatively easy to rescue, like a goat trapped in quicksand. But, as a royal prince, he would be as difficult to extract as an elephant. The boy told no one about this dream, but on other grounds cleverly excused himself from this marriage.
It is bad that an ordinary practitioner does not internalize the teachings and transform. But whatever misdeeds of a practitioner, it can be easily corrected without damaging the Dharma. However, for great masters to be trapped by their own samsaric pleasures and attachments, it is very damaging for the growth of the Dharma and it destroys the faith of disciples and students. I am sorry but like the way this master had conducted himself brought a very big downfall and setback to the Zen tradition that will take decades to repair if ever.