can someone tell me what the implications of failing in 2023 may be for residency app?

I don't really know many ppl going thru this process and curious what y'all's understanding of the process is.

I've just been telling myself, 'my dean's letter will surely make it clear that if I fail, my fail was a fluke based on my record and I'll be fine' I'll retake it and be on track w all my classmates who delayed.

My friend was like noooo schools will see a fail on ur record and just not even look at ur app. Is that true?

For context my ac advisor told me I was well set to take my exam after 2 99% of passing scores on my nbme practice tests a week prior to my exam. I also passed the mock exam my school provided a month and a half prior to my test date . Although my school's didactics curriculum is pass fails all my grades have been excellent. However I can't stop thinking about all the questions I now kno that I got incorrect on my exam on 1/30. I'm a ms2 about to start my cores. I have no idea what specialty I want to do so maybe my friend is reacting from a POV of someone gunning for a competitive specialty?