To be clear, this is a two-year master's program but I applied to PhD programs during the first year and wrote in my statement of purpose I would not finish this master's.
I had straight A's the first term of the master's and I am currently in the second.
If you gaze long into an abyss, you will fall into it
Abrahm Lincoln, Beyond Good and Evil
If you have straight A's in the first period, it is unlikely you will fail. Do your best in the second, and then you will see.
At the moment, you have nothing in hand, so you are purely speculating about the future. Having already obtained a Master's degree is usually not an hindrance in being admitted to a PhD's program. However, you may have to "repeat" it.
My suggestion is: keep on applying to PhDs programs. As soon as you are accepted into one, drop out of the current master and try to find an opportunity to build some cash parachute, i.e. taking over a paid internship in a field close to your PhDs, or even just serving tables. You will need that financial parachute towards the end of your PhD (or even during you PhD ...)
