Yes, Tatara is aware. The note was more for the rest of you than it was for our Sage.

[Though he sees that tilt towards the village they currently face, and he shakes his head. Not them.]

Failed, no, but the concern was there. The balance of this area is rather fragile, and the absence of the existing wizards was creating a power gap that many things would be eager to take advantage of, natural and hostile alike. At the time of the ball, it was not guaranteed to be dire. But the possibility was there.