Yes you can earn an "unsatisfactory" grade on a 141 stage check, an incomplete is when you or the designated examiner need to discontinue due to illness, time, etc. A completion of an FAA approved 141 course replaces taking a checkride. Your "checkride" is just the last lesson of that course. Often the school will have a stage check right before the final lesson because they need to maintain a %80 pass rate of that final lesson if it pertains to a certificate or rating in order to keep their 141 certificate.
Airlines are aware of how it works and often ask if you have unsat any STAGE checks. Just be honest, I don't know of anyone that made it through a 141 program without any hiccups, they know it's difficult; especially early on in your training.