In your CV, I would not mention anything other than the tasks you have done during the vacation scheme and the skills you have developed. I personally do not think it is necessary to say whether you obtained a training contract or not, even if you have it. I personally did convert my vacation scheme but when I was applying to part-time positions after I did not include this in my CV. However, I would either mention it in the interview or I would be asked about it.
In your case, you will be definitely asked about it so I think having a genuine response as to what happened can help you, as long as you focus on what you have done to improve whatever did not work out in the last vacation scheme. I would highlight how the experience solidified your motivation to commercial law and the best takeaways you have got from the experience. Focus on the positive aspects of the situation rather than the negative and you will see how your answer will appreciated by who is listening to you.
I hope this helps and good luck with the application cycle!
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