VW have been using chains for decades.
A failure is very rare, aside from ‘known fault’ type situations, but it will usually write off the engine if it goes (usually because it will be an old car by then) but they can go on rattling away for years without breaking.
The problem tends to be that they’re ‘lifetime’ parts, which sounds great. You never have to change a belt which makes servicing cheaper. Unfortunately ‘lifetime’ to a manufacturer unofficially is about 100k miles and 10 years and the real downside is they’re usually a complete pig to do.
I’ve only done one myself on an old Golf VR6 the chain on those is between the block and the gearbox and you’ve got to strip tonnes of stuff off to get at it. The bits are cheap though.
They generally sound a bit rough / rattly as idle