This issue was picked up as part of 2-step Moodle 3.11->4.1 upgrade.

1. Set up Moodle 3.11 instance
2. Make a test course with one student
3. Enable completion tracking in the course settings
4. Create Assignment activity with Grade type set to Point, Maximum grade set to 100, Grade to pass set to 50, Completion tracking set to Show activity as complete when conditions are met and tick Student must receive a grade to complete this activity
5. The completion hint says “If enabled, the activity is considered complete when a student receives a grade. If a pass grade for the activity is set, then pass and fail icons are displayed in the activity completion report”
6. Log in as a student and submit a submission
7. Log in as admin and grade the submission with grade of 40
8. View the activity completion report. The activity is marked as Completed (did not achieve pass grade) with a red cross icon
9. Log in as student and access the activity page. The red label Failed:Receive a grade is displayed
10. 
11. Upgrade to Moodle 4.1
12. Log in as admin and confirm the completion settings are the same
13. Completion report shows the activity as Completed (did not achieve pass grade)
14. Log in as student and access the activity page
15. The red label Failed:Receive a grade is displayed as well as red cross on the left hand side (course index)
16. 
17. Upgrade to Moodle 4.4
18. Log in as admin and confirm the completion settings are now set to Receive any grade
19. Log in as student and access the course page. The activity is marked with green icon on both the course index and section area
20. Expand the Done icon and confirm that Red cross is displayed for Receive a grade
21. 
22. Access activity page and confirm it prints the red label Failed: Receive a grade
23. 

Speculations and suggestions:

• In 3.11 a red label "Failed: Receive a grade" is shown - this seems to be incorrect to me as grade is received.
• In 4.1 a red cross is displayed on the left hand side (course index) - this seems to be correct as the activity was failed. Also a red label "Failed: Receive a grade" is shown on the activity page and this is wrong the same way as in 3.11 (ok for red colour but wrong wording).
• In 4.4 a green circle/dot in the course index - doesn't feel right as the activity was failed. There is also a green Done dropdown in the section area - same issue with the colour, I think it would make sense to have it red as the activity was failed. Speaking of the wording Done may be ok as no further actions required from the student. On the activity page the red label "Failed: Receive a grade" is shown and this feels in terms of wording (red colour is kinda expected)