I'm having the same issue. When I look at Telescope, there are 39 pending jobs left:

But these 39 jobs are failed, so the batch should be finished. But instead, it keeps hanging on 'pending'.
The finally() callback is never called.

I would also expect finally to return when the batch completes regardless of failures. This is useful for my project to be able to know when a batch is done and trigger an event to the UI to say it has finished running (with errors or without)

Will this ever be fixed? :)

+1, any fix for this? Very important for critical batched workloads.

+1 Hard to use this to it's full potential if we cannot rely on finally being called.

To this day, this issue is still confusing and differs from what the expectation is for a finally block.

The fix for this is fairly simple, but I don't know if it is a fix or not. Inside CallQueuedHandler you just need to check if the job had other jobs chained to it, and then decrement the pending jobs in the queue before failing the original job. This will ensure the finally callback is triggered.

protected function ensureFailedBatchJobIsRecorded(string $uuid, $command, $e)
    {
        if (! in_array(Batchable::class, class_uses_recursive($command))) {
            return;
        }

        if ($batch = $command->batch()) {
            foreach ($command->chained ?? [] as $index => $chained) {
                $batch->decrementPendingJobs($uuid.'-'.$index);
            }
            $batch->recordFailedJob($uuid, $e);
        }
    }

The only reason I am not wanting to spend time on making a PR is that it is likely a breaking change since the current mode of operation is seen as the desired effect, and not a bug: #39243 (comment)

I also don't know if this is the ideal way to handle the implementation. There is not a way to "fail" the remaining jobs in the chain because they were never dispatched to the queue to begin with, and it doesn't make sense to record a failed job when it hasn't been attempted.

Another way would be to modify Batch::add() and change it so it only adds a single job for chains, add a public function to increment the total jobs, and in the CallQueuedHandler::ensureNextJobInChainIsDispatched() add in something like:

if ($batch = $command->batch()) {
    $batch->incrementTotalJobs(1);
}

This way, however, doesn't play very nice with the progress() callback as it is continually incrementing the total jobs it needs to do.