When a learner is marked absent in a courses there are reports (e.g. learner progress) that show the learner's ILC status as complete (complete = attendance has been recorded). Because of this we use FAIL instead so that we can more accurately see if some has completed or not completed an ILC.
However, on the ILC Session report - you can only see enrolled, complete, absent, max seats. We need to see how many people have been marked as Failed (for this reason and or perhaps they didn't pass the requirements within the course).