Support Failed conditions in Data Plane

Issue Description: Currently we're setting failed condition with False value but we should use Failed as described here

https://docs.google.com/document/d/1TM_ev8RV_Vft9YusIVDRe0zm7aHE2G-VHszFxYOpBRs/edit

Acceptance Criteria: Do not set resource to false but to failed

Out of Scope: <Here you need to fill in what is out of scope for this issue and then create new issues if necessary in the backlog for the work>

Additional Information: <Add any additional information here that may be helpful to people reading the ticket>