Hard disagree. That's stretching the definition of "failure state" to mean "anything negative".
By this logic getting hit is a failure state, taking fall damage is a failure state, another player scoring points is a failure state, not actively getting points is a failure state.
One could argue these are minor failure states, but ok, let's change it to anything that loses some amount of progress. Dying in non-hardcore Minecraft is a failure state because whatever you were trying to do was cut short, whether exploring an area, gathering resources, etc.
If you restrict failure states to only mean things that end the game, then games like Dark Souls do not have any failure states, since in Dark Souls you always respawn when you die. Most other modern single player games would also not have any failure states, since they also let you respawn as often as you like.
