Rewarding failure is a very poor game design. Compare when you fail a local leve to when you fail a regional leve. Failing a regional leve, you'd probably go "meh, I'd get it next go around" or "I did that on purpose cuz this is how we XP". Local leves on the other hand, when you fail more than two synths you'd probably go "FUUUUUUU-!" because chances are those are lost free SP, crafting mats, and a chance at the guild marks that you need bazillions of to buy all the trainings. Local leves success/failure incentives are decently well balanced so that you want to successfully complete them. Regional leves on the other hand are poorly balanced in success/failure incentives, such that failure doesn't mean anything outside of faction leves.

Compare the reward/penalty system of regional leves to dying and not dying in a fight: not dying means you downed the mob, get the loot, earn XP, get recognition; dying means you will incur some sort of penalty, which in this game is minor gear durability loss along with a 3 minute weakness period where you can't really do anything. In addition, you need to return to the last aethryte you touched, which could possibly mean a long trek back to wherever you were fighting. As a result, people don't like dying. This is a good reward/penalty system that encourages success and avoiding failure. Failing a regional leve gives... no penalty, other than the fact if you want to complete it you would have to reset it after leve reset. Sure you won't get the money or the faction credit or guild marks, but in the current state of the game, all three are pretty worthless.

A possible solution to this is to do something similar to local leves where failure means you lose that leve, no trading it in, no rewards from it, no additional do-overs with the same mobs you just killed. Or if they wish to keep the ability to redo the leve, then make it so that on repeats, you earn no SP from the mobs.