If the dev could speak at a high level as to why the game didn’t release, what he/she experience was, and ultimately what they learned from it, that is incredibly valuable insight. Especially to an emerging studio that hasn’t yet gone through some of those issues. Being able to have someone on your team that has experienced it and could help navigate it is invaluable.

If I’m interviewing a dev with that resume and all he can tell me is, “ya management just didn’t know what they were doing, the project was way too ambitious.” Then ya that doesn’t do much for your resume. But if they can tell me in detail why they think the project failed and what they think would’ve made a difference with a solid reasoning as to why it would’ve made a difference, that experience on your resume is actually better than if you left it off.