Criticism on 1st Year PhD report
I think that the criticisms which you describe are within the scope of constructive criticism. While you should not ignore them, they are not in themselves indicating any kind of "failure".

Depending on your discipline, and on the particular supervisor(s), feedback on progress reports of this nature can vary greatly. Some supervisors only write comments if they have serious concerns; others, who are basically satisfied, may still wish to give detailed suggestions for improvement. So it is difficult for strangers on this site to offer conclusive advice; you should probably approach your supervisor or some kind of departmental "Postgraduate Tutor" if you are worried about this report.