It’s hard to call any machine that gives you ice cream a failure, but this one is about as close as they come. (Your product shouldn’t need Sharpie scrawled all over it just to be useable).
What’s truly remarkable is that the machine is simple: it only has one lever that goes up and down. Design is a fascinating thing.
And yes, that red dot is an infrared sensor that keeps the machine from operating unless it is covered with precision.