Fountain's not bugged. This is how it works -- everyone that plays in the fountain sees the same loot. If someone takes it before you, you get the next loot set (which may be great, or maybe not). If no one takes it, it sticks around a bit before resetting. The problem is a lot of people are going after the same items that you may be trying to get also.
And a lot of those characters are dummy-alts, lieutenants that are there trying to scoop Mk.11 and 12 gear for their mains or because they belong to RMTers.
So even if it's not bugged, it's seriously ****ing broken.