Yes, prop firms win when you lose, and that's OK
I see this a lot in trading subs. Someone posts about blowing an eval or a funded account, and the comments fill up with "prop firms are a scam, they're designed for you to fail, the whole model is built on taking your money."
They're not entirely wrong about the business model, but they're drawing the wrong conclusion from it.
Yes, prop firms make money from selling evaluations to a lot of traders, and most of those traders don't make it. And so the prop firm gets to keep their money and never has to pay them out. But that is just part of the deal.
It's the same way when you go to a casino. A lot of people are losing money, a few people are taking away money, and the house is keeping a nice profit.
The thing with trading is, you have control over whether you are the person who makes the prop firm rich... Or the one who gets them to pay you out on your trading, again and again.