You have the Will Save set to Half damage on Save. That is incorrect if you want it to untarget and only apply an Effect on Failed Saves.
Per Moon Wizard:
It depends on the Per User targeting setting (Target: Remove on Miss; Default = Multi), as well as whether the spell as Half Damage on failed save.
Default is to remove targets on miss when multi-targeting only and that is disabled when half damage on failed save is enabled for the Save (i.e. shows (H) in the save roll).
I just tested in PFRPG 1E, and it is working.

