OK. So Regulation 7 says that the main route for progression from Level 6 (Year 3) to Level 7 (Year 4) is by "successfully passed all 120 credits" or "achieved the profile for compensation and have been awarded 120 credits (see regulation 6)". We know that compensation (where they turn a blind eye to a module failure and "pretend" you passed it) doesn't apply because "compensation is automatically applied by a Departmental Assessment Board once you have made an initial attempt at all modules on the level". That didn't happen, so the module or your profile doesn't meet the compensation requirements (see Regulation 6 for the rules).
However, there is an alternative route, which allows you to progress from "from one level to the next carrying:-
• up to 20 credits of failure, or
• up to 40 credits of continued reassessment (see regulation 7.1), or
• a combination of failure and continued reassessment up to a maximum of 40 credits."
One of those must apply, else you would not have been able to progress from Level 5 (Year 2) to Level 6 (Year 3).
However, "You can progress carrying outstanding credit from the level below only, e.g. you can progress to level 6 carrying level 5 credit but not carrying level 4 credit." This means you
can't carry forward your failed modules into Level 7 (Year 4).

There does appear to be a little "wiggle room" on the above, as "Continued deferral can exceptionally be agreed with attendance. In these circumstances, the continued deferral with attendance will be treated in the same way as failed credit to determine progression and credit loading."
I
strongly suggest that you contact your Academic Adviser for further advice; you will find their contact details on the ‘Key Support Advisers’ section of Blackboard. (See
How do I find out who my named Advisers are?) They will know the specifics a lot better than some random stranger (me) who's just reading the rules.
