ok... then they may want to state openly " the lengths of medical training program at this particular med school will last 5 years" so that we, the "others", will get into your special master from the very first beginning. This way people would know exactly what to expect, there is no need to waste one year to find out mid towards end of the cycle that there are not equal chances of admission at school X because you, in the MP, are more "fridge" candidates than others.
There might be some of those "other" people that you are talking about who got master's degrees before they applied to your school but they would not be seen as worthy (or whatever) as you are since that degree was not obtained at your school and the 20K (or more) went to another school instead of going into your special MP.
Why should they state that? There are 165 people in the class and at most 7 of them will be master's students. Not everyone got in this year. I am sure the person who didn't even get an interview will be trilled to know that taking this program is automatic admission.
As far as other master's programs go I have no idea how they view them but I would assume that they would show a preference for UT students, just like they show a preference for UT undergrads.