Should I disclose a 2-month employment where I didn’t pass nesting?

Hi! Need some advice regarding employment history/background checks.

I stayed with Company A for almost 2 years, then transferred to Company B, which is an in-house company. I only stayed there for around 2 months because I wasn’t endorsed to production after nesting due to not meeting one of the required metrics.

For context, medyo strict talaga yung nesting/evaluation. Around 25 kami sa wave and only 7 were endorsed to production. Most of us were already tenured/experienced in the BPO industry, so it wasn’t really a case of being completely new to the job.

Now I’m planning to apply to other companies and I’m wondering:

Do I still need to disclose Company B even though I only stayed for around 2 months and didn’t make it past nesting?

I’m thinking kasi baka makita rin siya during background checking or through employment/government contribution records, and I don’t want nondisclosure to become a bigger issue later.

If I should disclose it, how would you explain the reason for leaving during an interview without making it sound like a major red flag? I don’t want to lie about what happened, but I also don’t want the interviewer to assume I’m incapable based on one failed nesting period, especially since I have almost 2 years of previous experience with Company A.