This year I have been pursuing my second Master's degree in pure mathematics. It is a one-year program in which the final score is determined 100% by the final exams. I have excellent scores at my previous degrees, but this year I faced a health issue which resulted in me making very little progress, to the point that I'm pretty certain I will fail my upcoming exams. Assuming that I will be able to overcome my health issue and apply for a PhD* in the future:
Would it look better in a PhD application if I pulled out of my upcoming exams completely or if I took them and failed them?
What would I write in my CV in each case?
The second scenario sounds a bit worse to me because there will be a transcript with extremely poor grades which I will have to attach to any future PhD application. But maybe I'm missing something. Any advice is welcome.
*: I haven't decided whether I will be pursuing a PhD or not, so I'm posting the analogous question at workplace.SE as well. I don't think this is cross-posting since the option that is best for pursuing a PhD might not be best for job hunting (for example I'm not sure whether you are supposed to attach your academic transcripts in a job application).