Execuse me, what is this? does anybody understand anything?

I would say your "contact" is more likely jealous. She is from this kind of people who suck happiness from us. They say negative comments in order to destroy your moment of achievement. Go forward and concentrate on your research. Remember that many brilliant students do not get a chance to do a PhD at all.

Hi. I would first try to translate. Defending thesis here you mean starting a PhD in that area or you already finished and you mean contacting examiners in these areas?
If you have an opportunity to do biology and want a postdoc in biology, why do you want to do in Medicine? However I believe doing postdoc in a slightly different specialisation is not uncommon.

Absolutely. Especially if the names are not latin names

I am really sorry for what you going through. Sincerely sorry because I was in a situation somehow close. I was doing a PhD based on fantastic results done by a previous PhD student. He achieved good results but the way they were presented made them look like a Noble prize candidates. The supervisor insisted that I should build on this work to get a bigger system and publications and eventually a PhD. The first problem was, the results are not that fantastic as they were presented. The second, the "innovative" work was already done and the supervisor asked me to do "normal non creative" work to add to this "innovative" work to build a brilliant system.
To make long story short, after five years, I left without a PhD and with disappointment and shame.
Now you spent two years. Do not wait one more year to discover it won't work. My problem was also that supervisor was not accepting the fact that we can do other research or the fact that previous research is not as great as he thinks.
Start fresh. Go for the scholarship. A real Master is better than a fake PhD (if any). No one would stop you after Master from pursuing another PhD.

First thing is the supervisor then he tells you if there is a fund.

Hi. I would not recommend that. 17 hours per week means 3.5 hours per day. This is a lot. I am sorry for being rude, but I have to be. Be grateful that you earn enough money from the EPSRC funding and you are single so 14-15k tax free, council tax free would be absolutely fine. Appreciate what you have. I do not think PhD time was meant to save money.
If you do not like the money of the PhD, then try to search in Nordic countries, Germany and Switzerland. There you can earn above 2000 Euro net per month.

Being said, the reputation of the supervisor might not make him a good or a helpful person. Of course no guarantee for a recommendation letter. The ranking difference is not that much. So I would not also say go for uni2. If I were you I would follow my passion and the more interesting topic (regardless of the hope of getting a recommendation letter). Getting a PhD after Master is another story. From my personal experience, think about PhD while doing Master is going to distract you. Concentrate on the present and make the most of it.

Hi. You have posted before that you think of doing a PhD. I would advise to go ahead. I do not know personally someone moved from research to industry then back to academia. The reason is that they usually settle and get a decent pay with a stable job. What is then the motivation to leave the job for a Postdoc temporary job depending on the availability of fund?
But anyway, anyone can move from any field to another. From industry to academia. There are no boundries.

Just tell him that you told them it is funding problem and hope for the best. Do not assume and over think bad things to happen.
It is for the benefit of you first, and ex supervisor next to have a "neutral" relationship. You do not have to have a hard breakup.

Hi Monkia. I have read your previous posts. From my personal and my peers experience, if you talk negatively about your ex-supervisor it reflects on you. If you say your former boss was bad, the transferred message to the prospective boss is that you were bad. In my opinion, it is a general case even in personal relationships and in particular in professional life. Have you watched "Sleepless in Seattle"? All women wanted to marry the widower who talked positively about his dead wife. I do not ask you to lie and say you former supervisor was extremely nice. But you can tell the story in a diplomatic way that lack of fund and different visions of research was the reason that it was for the benefit of you and the institute to stop at this point.

@pm133, you have accurately described the two major drawbacks of lyrics: formatting tables and "anguish of getting hold of a good template and learned the basics". I remember now why I am still not a big fan of Latex.

Hi. I wonder how far are you into writing? If not so much, I would highly recommend to learn LATEX and rewrite the sections you did in Word. LATEX can also makes you crazy but Word will definitely drive you crazy. In LATEX, adding and removing figures "almost" does not affect the previous and next section. In Word, you know.
If you are going to use Word anyway, of course the best is to write the appendices in Word text. If not, paste as picture is not too bad. I would also agree with you to combine them to minimise the risk of shifting in the documents.

I would first assume all universities have same quality and the same interesting PhD topics are available. Moneywise USA is bad. For a family it is very hard. Assuming your spouse will work is dangerous (from experience he might not find a job easily).
Now to Germany. Pros is stipend of PhD is OK. Cons: It is really hard to find a job without good German.
Why do you exclude Ireland? If the salary is OK and your spouse is allowed to work (check this carefully before moving forward), it might be a very good opportunity.
One more thing, do you plan to settle or at least stay for a while after PhD? Germany would be the easies in terms of visa after PhD but finding jobs is not easy and also life for a foreigner is not great.

Is jumping not possible because the regulations state this in the country of university? or just with this supervisor?
I would not recommend to pursue a Master for a hope or a word for a PhD from a supervisor. Do a Master which increases your chances afterwards to do what you want to do including pursuing a PhD.
From personal experience, Mres gives ypu experience in research and if you publish, it would be great. But the Mres is not very well understood everywhere. So I would prefer a taught MA which has a clear start and end and well defined transcripts and grades. I had benefited from Mres but also suffered because of it. So do not be the guy with the weird degree.