Nothing odd about it as battery health and maximum capacity are two different things.
Not sure what you mean by "failure" but a battery with poor health has high internal resistance, meaning activities that draw a lot of power like taking a photo may cause unexpected shut down.
You know, as somebody who doesn’t update, I was so shocked the first time I used a combination of an updated device with poor(ish) health.
I used my iPhone 6s on iOS 10 for about a year with 60% health and it had like-new battery life. Heavy, LTE usage with camera and outdoor brightness dropped fast, but linearly (and I don’t even think that was due to health, as the 6s’ battery life for heavy usage has never been good, not even when new and on iOS 9).
And when, for compatibility reasons, I switched to my 82% health iPhone 6s on iOS 13… I was shocked. I opened the camera app with outdoor brightness and the battery would go, within 45 seconds… 82%, 78%, 72%, 67%. Boom. 15% gone in under a minute.
Even now, when I use it for music sometimes, it’s insane. Downloaded music. On Airplane Mode with Wi-Fi and on standby with Apple Music. 4-5 hours of playback with pure downloaded music and no screen-on time and the thing has 40%. 40%!!! (From 100%).
Apple quotes 50 hours of audio playback? I think it would die after 7-8 hours, and this is with perfect conditions. The difference is insane.
My 6-year-old and now 6 generations old iPhone Xʀ on iOS 12 would get twice as much runtime with the screen-on than the 6s on iOS 13 gets on standby mode, Airplane Mode, playing downloaded music. The lightest possible task. Insane.