Depends. If the infrastructure needs remedying, then it’s a signalling fault. If the train needs remedying it’s a train fault.If a train suddenly disappears and the signalling system assumes the line is clear, I'd call that a failure.
In between the two there used to be quite a bit of yellow plant that was ‘unreliable’ or more technically couldn’t be relied on to operate track circuits, so it had special signalling instructions. They have track circuit actuators these days so far as I am aware.