Has anyone failed to get a refund due to the 2-hour limitation on the refund policy?

IMHO, 2 hours is not enough to get a feel of the game, although I admit if the game is good, you will know it within the first two hours. If it's "meh" or a genre you're not familiar with, you might need more than 2 hours. Heck, some games' tutorial periods are close to or more than 2 hours!

Just want to try a game due to recommendations but would like to be able to refund it if it doesn't meet my playstyle.

The problem is for shorter games. People will play most of it then get a refund. When they implemented it a lot of indie devs took a nosedive in terms of final sales. Truthfully, I doubt I would play any of those games anyways but I can see why the policy is in place.

So I should not have problems with bigger games like Fallout 4 or Pillars of Eternity or Divinity Original Sin?

I did that refund thing for the last Tomb Raider. I clocked in a hair above 2 hours and it went smoothly...

No, it is 2 hours firm. I believe they should use a gradual system which they may implement in the future. A multiplayer AAA game meant to be played for 40-300 hours? 2 hours is not enough. A short, 3-4 hour indie game? 2 hours is plenty.

However feel free to contact Valve. They may give you an exception.

So, you finish half the game, then you ask for a refund?

To be honest, no one should buy a game out of impulse and curiosity. If I am spending $50-$60 on anything you do your research. You watch videos, check message boards, and ask people you trust, folks at SimHQ for example.

By that time you should have an idea if you like the game or not, and if there are any doubts yet, 2 hours should be enough to check that out.

I think return limit is also set to instances where there are technical issues with the game. If you have an issue and is not resolvable, 2 hours should be enough time to try any fixes. You can always buy the game again later if a solution is found. it's not like they are running out.

Otherwise, you will have instances of what others have mentioned, people that go through a game to the end and then ask for a refund.

I watch the videos first and if it looks remotely interesting i pull the trigger at checkout.

I bought a game two weeks ago because the initial reviews looked good. Played it and realized it just wasn't my cup of tea. Had played a bit less than 2 hrs, got a refund from Steam with 2 days.

I think it's a pretty fair offer.