When you have an idea for a video game and you create a prototype or you publish a polished version of the game, the only way to know which things work and which don't... is to have as many people as possible try it out and wait for their feedback. I wouldn't say you failed because it's part of the process. In fact, immediately after the end of the game jam, you modified your project. Even without feedback, you realized something was off. That's good.
You do something you think is clear, but then people will give you all different kinds of feedback. You correct the project, and you continue like this until you are satisfied with the result. Or until you have time to do it.
Btw, the ending I got was the first one you mentioned.