Looking at the OOTB BT Web Services by Method I can see a few methods marked in red which indicate failed transactions but on the other hand they also report 0% failures. I suspect the red dot tells us that these web services were part of failed transactions(PurePaths) but the service itself did not report any errors hence the 0% under Failed %. Am I on the right track here or there is more to it?
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A Business Transaction always looks at the full transaction. So, the failure count tells you how many of the transactions where this web service was called actually failed.
We identify this by the Error Detection mechanism where we look at things such as HTTP Response Codes, Exceptions that are thrown back to the end user, Severe log messages, etc.
One thing that needs to be considered, when the percentage of failure is very small Dynatrace doesn't show, for example 0,001 (I guess it would show 0%). That should be your case, as I could see the count of those web services is considerably high.
Let me know if that makes sense.