Like the title says, the failures set in the mission editor do not occur ingame, however, they appear in the mission report. although this is an issue with all modules i've noticed that when i set the one of the engines to fail on the f5-e, the fire light for the appropriate engine lights up but the engine does not fail.
The issue only started occurring with the release of 2.0.
It isn't a major issue, but I'd like to be able to practice emergency landings every now and again.