It does show up, at least on the report my previous employer sent. It isn’t considered a training failure though. You can check the no training failures box, but if you are worried about it you can always explain at the first opportunity. I know I stressed when I saw it because I didn’t think I had any 121 failures, but don’t worry. I’m sure they see it all the time and HR knows what is and is not considered a failure. Honesty and transparency is the best policy.