Next, why does this not work in every aspect? surely a equation should
be "universal" and should still work with any values given.
Yes, it would be nice if we could find an equation that was "universal".
In the case of mass m, energy E, and momentum p, there is such a universal equation:
$$E^2 = (mc^2)^2 + (pc)^2$$
Einstein, always wanted to
create a theory\equation that applied to every aspect of physics and
has no "fudge" factors
Yes, it is a great triumph that this equation always applies to every aspect of physics, with no fudge factors: $$E^2 = (mc^2)^2 + (pc)^2$$
I came across a "special" cases where this does not apply
Really? My understanding is that the above equation does always apply.
Have you actually calculated or measured what the alleged difference is?
Most importantly, why does this not work,
I don't understand. The equation $$E^2 = (mc^2)^2 + (pc)^2$$ always works, no matter what the velocity.
If the body's speed $v$ is much less than $c$, then the equation reduces to $E = (mv^2/2) + mc^2$.
What do they mean by "much slower", what is the boundary
for "much slower"?
What they mean by "reduces to" and "much slower" is that people are often willing to tolerate some small amount of error,
and given any particular amount of tolerable error,
there is some range of speeds (including 0) where the equation
$E = (mv^2/2) + mc^2$
, while not mathematically exactly correct, is within that tolerable error of the correct equation.
So, if we're willing to tolerate an error of 0.01%, then this technically incorrect formula is adequate for speeds v slower than 0.1 c =~= 108,000,000 km/h.
Sometimes we do much higher-precision measurements -- in that case, there is some smaller range of slower speeds that gives adequate precision with the Newtonian formula.
Historically this "reduces to" was important, because over a century of research showed that Newtonian equations always matched up with the actual observed results, to within experimental error. People were reluctant to switch to Einstein's equations -- that, as you pointed out, are not the same as the Newton's equations. Why would they switch from something that works to a different equation?
The point is that all those experiments were at velocities so slow that the difference between the "correct" equation and the "incorrect" equation was too small to measure.
And so to decide which equation was right, we needed to do new experiments where the difference between these equations was big enough to measure.