From that flowchart, if you fail "up to 120 credits" in first year, resit and then pass them all, you progress to the Level 2 "Honours stream". The same applies if what you failed was a pre-requisite for Level 2 non-honours stream. What most of that means, I have no idea, but I think it means that failing in first year lets you resit like A-levels without any repercussions (assuming you don't mess it up second time).
At Level 2, the chart shows again that, if you pass all credits at the resit, you then progress in to the Level 3 "Honours stream". So there are second chances, by the looks of it.
At Level 3 there isn't, obviously.