The Merriam Webster dictionary you quote contains a far broader range of definitions than you presented (see below). A "Perfect Master" can be perfect by virtue of "satisfying all requirements".

Maharaji certainly satisfies that criteria for his students.

Main Entry: ¹per·fect
Pronunciation: 'p&r-fikt
Function: adjective
Etymology: Middle English parfit, from Old French, from Latin perfectus, from past participle of perficere to carry out, perfect, from per- thoroughly + facere to make, do -- more at DO
1 a : being entirely without fault or defect : FLAWLESS <a perfect diamond> b : satisfying all requirements : ACCURATE c : corresponding to an ideal standard or abstract concept <a perfect gentleman> d : faithfully reproducing the original; specifically : LETTER-PERFECT e : legally valid
2 : EXPERT, PROFICIENT <practice makes perfect>
3 a : PURE, TOTAL b : lacking in no essential detail : COMPLETE c obsolete : SANE d : ABSOLUTE, UNEQUIVOCAL <enjoys perfect happiness> e : of an extreme kind : UNMITIGATED <a perfect brat> <an act of perfect foolishness>
4 obsolete : MATURE
5 : of, relating to, or constituting a verb form or verbal that expresses an action or state completed at the time of speaking or at a time spoken of
6 obsolete a : CERTAIN, SURE b : CONTENTED, SATISFIED
7 of a musical interval : belonging to the consonances unison, fourth, fifth, and octave which retain their character when inverted and when raised or lowered by a half step become augmented or diminished
8 a : sexually mature and fully differentiated <a perfect insect> b : having both stamens and pistils in the same flower <a perfect flower>
- per·fect·ness /-fik(t)-n&s/ noun
synonyms PERFECT, WHOLE, ENTIRE, INTACT mean not lacking or faulty in any particular. PERFECT implies the soundness and the excellence of every part, element, or quality of a thing frequently as an unattainable or theoretical state <a perfect set of teeth>. WHOLE suggests a completeness or perfection that can be sought, gained, or regained <felt like a whole person again after vacation>. ENTIRE implies perfection deriving from integrity, soundness, or completeness of a thing <the entire Beethoven corpus>. INTACT implies retention of perfection of a thing in its natural or original state <the boat survived the storm intact>.