I’ve tried for a very long time now to do this escalation, but it seems to be bugged. I accident killed all the targets, the first one in my suit, then knocked out a body guard and took his clothes, then the other two targets. To my knowledge nobody else was harmed and the mission should have failed instantly if they were. Then, upon escaping in the car it failed me literally as I was driving away, saying a civilian was killed or pacified, even though that should have been impossible there.
Also on the lower levels trying to knock out the blue shirt guy who is working on the boat where the wrench is, is impossible, because the curtains in the room he goes into are see-through to NPC’s. You can’t even sedate him by poisoning his water bottle as they will spot him being knocked out inside the building.
I know they say to report stuff in Hitman 3 but that has way too many bugs, broken mechanics, and missing content in the Hitman 1 pass for my liking to be playable. I think this escalation for example is not in Hitman 3 at all.