Error "FAILURE: Failed to submit the record producer." during the execution of test record producer steps, can be a sign that a previous step is taking a considerable amount of time to finish, and ATF attempted to move forward with the tests but could not since there is a running test.
Release or Environment
Eventually when a preceding step takes sometime to finish, then the next step fails since the preceding step is not completed.
To make sure the steps are completed it's require to add Timeout to the relevant step, that will ensure the step will run for that specific amount of time before going to the next step.
The field 'timeout' is hidden on the form layout, by a UI Policy, but it can be modified from the list.