No...it’s not a fail. It’s intentional.
I grew up in California and so did my kids (who are now ages 33 to 40). For both my kids and I, civics was taught in both 8th and 11th grades. Students had to pass a state civics test in 8th grade to graduate to high school. There was also a state test given in 11th grade. I have no idea whether those requirements still exist. If the tests are still in place, I wouldn’t be surprised if they have lowered the scores required to pass.