Applying for Masters Degree with academic integrity violation on record
Although it is perhaps possible that a school has a policy where they will not accept people with past issues involving academic integrity, I feel like this will mostly depend on the person or committee reviewing the applications. If you did well overall, I would think they would overlook something that happened years ago.

However, if it were my decision, I would apply to the school you're currently attending (since you said you know a lot of the faculty and it sounds like you're fairly confident that you would be accepted there; this would be your backup plan) and whatever other school you are thinking about applying to. Is there really any harm in applying to see if you will get in?