I had an engine on a single, taken from a jetstream, that came unglued on me two years ago. You bet they fail.
An interesting fact I got out of that whole evolution, which came from Garrett (Honeywell)...the TPE-331 can run a half hour without oil. No torque available because there's no oil to actuate the prop...but the gas generator will keep functioning. I found that out when I pushed up the power lever and got a normal engine response, but no torque out of the prop, and of course, no thrust.