Just to be clear - the units get added to your total when calculating your average, however you do NOT get the credit for the course. It does not count towards the 30 units of first-year courses that you need (or whatever the number happens to be for your program) and if you need the course as a prerequisite and you failed it, then you won't have the prerequisite.
Otherwise anybody could just register for courses, fail half of them and as long as the overall average is enough not to get kicked out, they could advance. That makes no sense. Obviously if you fail a course, it doesn't count as having "passed" and you didn't earn those credits. At the same time, it has to count towards your overall average, otherwise getting a 1 would be worse for your average than failing, which also makes no sense.
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