It's always better to include everything in the application. If it comes up in an interview (and it usually will) that you didn't include everything, it is a VERY large hurdle to overcome.
When it comes up in the interview, treat it the same as any other hiccups that occur in a career: These are the facts, this is what I learned from the situation, and, most importantly, I didn't repeat the mistake.
Just for some trivia: The #1 checkride failure according to an article in Flight Training magazine a few years ago--- Initial CFI.