Yes, I would consider Picard season two to be a failure.
For all it’s myriad flaws, season one was an attempt at boldly doing something different. Did every concept work? No. Were there clunky moments? Sure. Did the (rewritten, rushed, and gutted) ending fall flat on its face? You betcha. But there was a reasonably coherent narrative that held true to the premises of the show’s planned arc, and set up the characters & cast for future seasons. At the very least, the show projected faith in its core concept and company of actors.
Season two, on the other hand, scrapped that concept from its opening moments. Most of the ideas that had been developed were not only quickly tossed aside, but deliberately set up to be destroyed. La Sirena was literally depicted as a “wreck in the past”, and then unceremoniously hustled off stage left to become a borg ship. Evan Evagora was confined to a few perfunctory lines and a drink in the finale, before being bounced out of the ensemble. Allison Pill was given some wonderful material, but she too was written off at the end… for no real reason at all. Isa Briones wasn’t allowed to develop her character from season one at all, but rather forced to replicate her character arc in a new persona with poorer writing. She was literally written out via wesley ex machina, for god’s sake.
And why? To set up a more commercially appealing, easier to sell TNG cast reunion. At least Ent: These Are The Voyages had the good taste to allow the cast to perform in their own finale. Picard’s production team dumped their whole cast to bring in a new one. It’s as if in season two of TNG they fired everyone except Frakes & Dorn and hand waved a time travel excuse to bring in the TOS cast to save the show.
Ugh.