I’ve been out of the game for a while, but senario 1 is worse, becuase at least with senario # 2, you each gave it a fair shot, and, for whatever reason, decided that its not going to go forward.
In senario # 1, the venture could have been derailed because someone did not relay information correctly. So its not so much that your “person” was rejected, its the fact that it might have been something promising, had the other person / people done their jobs better.