It's possible that the launch vehicle performed nominally but the payload had its own propulsion or attitude control, which failed in some manner and prevented the payload from achieving orbit.
Maybe they mean the lower stage performed normally?
> the first stage of the rocket behaved nominally enough such that it was able to safely return to Earth and make a land-based landing along the Florida coast.
> According to one source, the payload fell back to Earth along with the spent upper stage of the Falcon 9 rocket.