Yes and no. They don't have to be reported to FAA, but they have to be reported to the next airline who has to request your training records from every air carrier you've worked for.

PRIA is not just about what gets sent to FAA. It's also what gets reported to other carriers. And yes, every testing event will be there.

AQP Failure
 

I failed my first recurrent AQP KV a few years ago. I had no previous failures and have since upgraded with no issues either having gone through a few recurrents since. Is the KV failure considered a checkride failure? And will this be a huge red flag going forward from everyone's experience?

It will be on the PRIA response from Skywest when you apply elsewhere.
I doubt it will be a showstopper though.

Won’t be a red flag. I wouldn’t sweat it.

As long as he admits it. If he doesn't, he will get fired in 3.5 seconds.

I was always told all training records stay within the company. Only FAA required items are shared with a future airline. Has that changed?

When I asked for my PRIA printout, it listed all training events. Basically a list of weird codes which I interpreted based on the dates (I knew what I was doing, when). One had a strange code that I couldn't figure out so I asked the records lady.
"Oh that was a failure".
"But I don't have any failures"...

Check your records every year, after recurrent or any type training. Check again IMMEDIATELY if you get an interview call.

Yes, it's a failure.

Frankly it's also more of a problem than an MV, LOE, or PC failure because unlike sim, there's no limit on how much you can prepare for a KV, and there's no variability for instructor, sim buddy, etc. I would take full responsibility, tell them what you learned, and how you've changed. You need to blame yourself for that one because there's no one else to blame and no extenuating circumstances. You either studied or you did not.

If it's your only failure, you'll get over it, but others with no failures will probably get called before you.

SkyWest will send all training records from the previous 5 years, to another requesting airline. When those records are requested, you can view the actual packet that was sent by the records department. You can view it where the paystubs are located in SWOL. If you are placed in special tracking for needing more sim time, at least one of the sessions will show an unsat. That unsat record will show on the training record.

You were told wrong. The PRIA AC is clear about this.

Or well, in a way you are correct: Training records ARE FAA required items.