diff --git a/hgext/fsmonitor/pywatchman/capabilities.py b/hgext/fsmonitor/pywatchman/capabilities.py
--- a/hgext/fsmonitor/pywatchman/capabilities.py
+++ b/hgext/fsmonitor/pywatchman/capabilities.py
@@ -62,7 +62,7 @@
     vers["capabilities"] = {}
     for name in opts["optional"]:
         vers["capabilities"][name] = check(parsed_version, name)
-    failed = False  # noqa: F841 T25377293 Grandfathered in
+
     for name in opts["required"]:
         have = check(parsed_version, name)
         vers["capabilities"][name] = have