What I am getting from the videos is that this test was a success but that there was indeed an engine failure and the system recovered from it successfully by throttling off the opposing engine. There was less Delta-V than expected, max altitude was lower than expected, downrange was lower than expected, and that tumble after trunk jettison and during drogue deploy looked like it would have been uncomfortable for crew.
This is the second time that SpaceX has had an engine failure and recovered from it. They get points for not killing the theoretical crew either time. There will be work to do. It's to be expected, this is rocket science.
It sounds to me like the launch engineers were rattled by the short downrange and the launch director had to rein them in.