but if an Ecuмenical Council teaches a fundamentally erroneous and flawed system of theology (with its faulty ecclesiology and soteriology) that we must reject in order to preserve our faith, then the Magisterium would have failed
The key words are 'teaches' and 'reject' and 'magisterium'. If we establish that V2 was not infallible, then indefectibility doesn't enter the equation because something which is fallible is not binding. And all non-binding 'teachings' (which aren't teachings at all) are therefore unofficial. Indefectibility means the Church will never OFFICIALLY teach error, which V2 never did.
The 2nd word, 'reject', is a good one because it implies we have a choice - which we do in the face of V2. We know that the new mass is illicit due to Quo Primum, (and probably invalid and definitely immoral) therefore it is also non-binding. We reject it because we are obligated to. In the same way, we know that the errors of V2 are errors because they already are condemned by previous infallible, ex cathedra statements. We MUST reject them, as a matter of Faith.
The 3rd word, 'magisterium' is used too imprecisely above. You said 'the magisterium would have failed'. Well, it can! ...if you're talking about the "merely authentic", non-infallible magisterium (which is another word for the 'current hierarchy'), which is the magisterial level of V2. So, yes, V2 was an example of the "merely authentic" magisterium failing, because it did not define anything, nor did it teach anything which agrees with "what has always been taught". But indefectibility does not protect the fallible hierarchy; it only protects OFFICIAL, infallible statements from binding catholics to error. None of which V2 contained.