"Fail open" usually refers to a fuse that opens and kills power, meaning the system is inert and safe on failure.
"Fail closed" is the opposite -- system has power and is live.
Computer security people have appropriated the term but use it for the completely opposite meaning. When your work straddles electrical engineering and computer security the best way to avoid confusion is just to never use the term.
I can tell my Claude to never use the term, but of course now I'm seeing it everywhere in comments from other people and it drives me batty.