Era is the imperfect form of ser, while fue is the preterite.
Here, era pequeño describes the mistake: it gives background information about what it was like. That is a typical use of the imperfect.
If you said fue pequeño, it would sound more like you are viewing the smallness as a completed fact or event, which is less natural in this context.
A useful contrast:
Cambió is the third person singular preterite of cambiar.
It is used because the sentence refers to a completed action:
This is not just background description; it is the main event.
So the contrast is very natural:
Spanish often omits a noun when it is already clear from context. This is called ellipsis.
So:
means:
The noun fallo is understood, so it does not need to be repeated.
This is very common in both Spanish and English:
Both are possible.
In this sentence, toda la frase is a very natural way to say the whole sentence.
Also note agreement:
Examples:
It can mean either, depending on context, which can be confusing for English speakers.
In everyday Spanish, frase often refers to a string of words or a sentence-like unit. In grammar, however:
So if the English translation says sentence, that is fine here in context. But be aware that frase does not always map perfectly to English sentence.
In Spanish, most descriptive adjectives usually come after the noun.
So:
That is the normal order.
If an adjective comes before the noun, it often adds a more subjective, stylistic, or emphatic nuance. For a straightforward description, post-noun position is the usual choice.
In your sentence:
pequeño is simply describing the size or importance of the mistake.
Yes, Spanish often uses definite articles in places where English might not.
Here, El primer fallo means the first mistake. The article is needed because you are referring to a specific item in a sequence.
Spanish commonly uses articles with:
So Primer fallo del informe... without el would sound incomplete here.
The subject is understood from the noun phrases:
So the structure is:
Spanish often leaves subjects unstated when they are already clear, but here the noun phrases themselves clearly act as the subjects.