US-IMG Grad, Feb 2020. Didn't match in 2020, but matched into one of my preferred specialties this cycle and will be starting in July. I took STEP 3 prior to intern year (to beef up my application) and continued to work in a clinic to keep the rust away. This is along the lines of how I answered when asked, and I WAS asked, about my STEP failure:
"I am glad that you have brought that up (or something along those lines). There are two things that I would like to explain about that. I believe that outcome was not reflective of me as an applicant or future physician. I believe my preclinical transcript (top quartile) and clinical transcript (honored all except two rotations, which were "pass") support this, as do my letter's of recommendation. However, I can tell you that what was reflective in that situation was what I learned from it and how I responded to that failure. There are times when we are faced with adversity, whether with an exam, or in clinical practice when managing a patient. Perhaps the outcome was not what we had worked for/hoped for, as was the case with STEP 1. I assessed what happened and where I had gone wrong and created a plan that I then implemented to overcome this obstacle. And this is the exact response that I will have in clinical practice. With each set-back, I have and will respond with the same tenacity and overcome."
This isn't an EXACT replication of what I said, but it is close. When application season rolled around I worked with school advisors on an approach and the first thing we talked about was STEP 1. The best thing, and it really was, was to come up with a response that was professional and accomplished two things: 1) didn't sound like a copout; and 2) genuinely explained what happened, what your response was, and what you learned from the experience; even better if you could translate this to clinical practice. Once I had something in mind and talked about it with my advisor I just rehearsed it so that if and when I was asked, there wasn't any stammering or "hemming and hawing". We may not like to think about our failures or setbacks, but PD's won't take issue with it. So be prepared.