That's an interesting point about game design. There actually are implementations of Tetris which have a win condition[0][1], and I think it's probably unrepresentative to pick games from an era where hardware limitations prevented modern mechanics like multiple endings and cutscenes.
As for modern games, I'm not convinced that failure states are a rare design element. It's true that games tend to include an auto-save feature if there is long-term state that needs to be preserved, but that still allows the player to "fail" and have to restart from the save point.
Incremental games like Universal Paperclips are a bit of a special case, because at some point the game plays itself and the end state (if it exists) is in principle reachable without any human interaction. I don't suppose there is any code in UP that specifically checks if you have been playing the game for billions of years though, to trigger an ending when all the mass of the universe has been turned into paperclips without actually unlocking all the "story" events.
Games like Getting Over It are also a special case, because their state is almost entirely defined by the position of the character in the game environment. They do have a clear ending, but failure is implicitly measured by how much forwards progress you lose when you fall. A mistake which takes you all the way back to the start is analogous to dying and starting a new game, though, so that still feels like the game has win and lose conditions.
> The only way to win is to avoid making the recursively self-improving paperclip maximizer in the first place.
In the game, there is a slight ambiguity about who/what the player's character is. You have control over the decisions before there is any self-improving AI, and also after the humans are all destroyed/enslaved. As such, it's not clear whether the player is winning as the AI, or watching in transfixed horror as the AI wins through a narrative that you are revealing. I suppose this philosophical question of viewpoint is the same as the one that Foddy considers near the end of Getting Over It: "Have you ever thought about who you are in this?", and with possibly the same answer.
[0] https://www.youtube.com/watch?v=N6mWpsu6zmQ
[1] https://www.youtube.com/watch?v=H_tmFUWu9bI