How is the sisuation in Egypt for Muslims?

The time you're talking about is when the Muslim Brotherhood was in charge and they persecuted non-muslims far more than muslims.

Nobody is treated any differently whether they're muslim or christian here.  In terms of people wearing traditional dress, if they have the full veil then the police and army may check them more, as they should.  It's a security risk and with things the way they are right now the authorities can't be too careful.  The full veil has nothing to do with the religion and it's known that in Cairo a lot of male criminals hide under full veil.

I've not seen the police in Hurghada treating anyone any differently, although there are more security checks at the moment after what's been happening in Tunisia, Sinai and Cairo over the past few weeks.