diff --git a/agent/src/datafile.rs b/agent/src/datafile.rs
index 15c1df932..d9dca74c9 100644
--- a/agent/src/datafile.rs
+++ b/agent/src/datafile.rs
@@ -682,7 +682,7 @@ impl DataFile {
                  * - Already destroyed; no more work to do.
                  */
             }
-            State::Requested | State::Created => {
+            State::Requested | State::Created | State::Failed => {
                 /*
                  * Schedule the destruction of this region.
                  */
@@ -697,17 +697,6 @@ impl DataFile {
                 self.bell.notify_all();
                 self.store(inner);
             }
-            State::Failed => {
-                /*
-                 * For now, this terminal state will preserve evidence for
-                 * investigation.
-                 */
-                bail!(
-                    "region {} failed to provision and cannot be \
-                    destroyed",
-                    r.id.0
-                );
-            }
         }
 
         Ok(())
@@ -773,7 +762,10 @@ impl DataFile {
         let region = region.unwrap();
 
         match region.state {
-            State::Requested | State::Destroyed | State::Tombstoned => {
+            State::Requested
+            | State::Destroyed
+            | State::Tombstoned
+            | State::Failed => {
                 // Either the region hasn't been created yet, or it has been
                 // destroyed or marked to be destroyed (both of which require
                 // that no snapshots exist). Return an empty list.
@@ -783,10 +775,6 @@ impl DataFile {
             State::Created => {
                 // proceed to next section
             }
-
-            State::Failed => {
-                bail!("region.state is failed!");
-            }
         }
 
         let mut path = self.base_path.to_path_buf();
diff --git a/agent/src/main.rs b/agent/src/main.rs
index 8be2507ae..879c4ca3b 100644
--- a/agent/src/main.rs
+++ b/agent/src/main.rs
@@ -206,7 +206,7 @@ impl ZFSDataset {
 
                 if i == 4 {
                     bail!(
-                        "zfs list mountpoint failed! out:{} err:{}",
+                        "zfs destroy dataset failed! out:{} err:{}",
                         out,
                         err
                     );
@@ -1589,15 +1589,7 @@ fn worker(
                                     &r.id.0,
                                     e,
                                 );
-                                if let Err(e) = df.destroyed(&r.id) {
-                                    error!(
-                                        log,
-                                        "Dataset {} destruction failed: {}",
-                                        &r.id.0,
-                                        e,
-                                    );
-                                    df.fail(&r.id);
-                                }
+                                df.fail(&r.id);
                                 break 'requested;
                             }
                         };
@@ -1699,7 +1691,7 @@ fn worker(
                                         r.id.0,
                                         e,
                                     );
-                                    df.fail(&r.id);
+                                    let _ = df.destroyed(&r.id);
                                     break 'tombstoned;
                                 }
                             };