I've never made it to chapter 2.
I'm thinking that instead of "in progress", "success" , and "failure" you replace "success" with "completed" and "failure" with "incomplete".
This way, if you don't finish a quest before passing to a chapter where you no longer have a means to finish it, it gets marked "incomplete", meaning you're no longer in the progress of doing the quest, but it was never finished.
But even if you 'fail' the quest, so long as it has been resolved, it has been "completed"; you've seen the quest to it's end.
Does that make sense…?