In the case of 1-2 Switch some people didn't want the Switch to be a "casual" console and so declared it a failure. I think that sentiment has changed though as the game keeps on selling and will probably sell decent numbers for a few more years.
ARMS probably disappointed because it was compared to Splatoon. I like the game a lot but also hoped it would do better. That said, 2 million is definitely not a "failure".
Labo, well... a lot of people said it would sell amazing (others said it would flop hard) and Nintendo banked on it doing huge numbers: stand-alone direct, press invites to play the game, big marketing push. That wasn't the case. It sold decently but not great. Out of the three titles Labo is the closest to a failure because Nintendo tried to push it so hard and treated it like an AAA game in terms of selling power.
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