I'm not able to reproduce this behavior here. Attached is a sample project (parent.bld) that calls another project (child.bld). The child project has a regular project step that will fail and some failure steps. The parent project calls the child and has its own failure step. I'm seeing the expected behavior of
1) the parent building the child project
2) the child main step failing
3) the child project's failure steps building
4) the child process exiting with a non-zero exitcode
5) the parent project treating as a step failure and
6) building its failure steps and
7) stopping with a build failure
If you can set up a reproducible case and post it we can take a look. Also include the info from Help | About | Install Info.
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