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I got infected with lycanthropy last night while searching for an escaped atronach in a werewolf-infested coven. The brief dream cutscene popped up but I had the volume turned down and couldn't hear what it said, so I searched in the UESPwiki and found it.

The wiki says you can cure lycanthropy with a spell, so I cast the Cure Disease spell but the game said the spell effect "failed," so I rested and recast the spell several times, always with the same "failed" result. I then reloaded my last saved game-- which was just after I had gotten the dream-- and continued clearing most of the dungeon.

When I got back to town to get the quest reward, I noticed the change in my stats and skills, so clearly I'm now a werewolf. (Thank goodness the dungeon was infested with werewolves rather than wereboars!)

The benefits are very noticeable when swimming and "walking" through dungeons, and during fights with enemies, so I'm strongly tempted to keep the lycanthropy, but I haven't decided yet. I haven't had it long enough to get a letter yet, or the urge to kill anyone.

My question is, when I cast Cure Disease and the spell effect "failed," did it actually cure my infection? If I hadn't restored back to before I cast the spell, would I have still gotten lycanthropy, or not?

Cure spells for diseases ad poisons and stuff have a %chance of success. You cast the spell but it failed to cure you. Chances are if you cast it a few more times eventually it would have worked.
If you wanted to be sure to cure it, get to atemple in time and pay them to cure your disease instead.

I ended up more or less abandoning that character, because he doesn't have enough spell points to cast Lycanthropy, hence he has no way to change back once he transforms into a werewolf.

And he did transform, with a whopping 4 HP, except he can't kill anyone because he can't find any citizens or guards in town, other than people in taverns who he's unable to kill; when he tries to kill them, he just makes swiping motions at them but it has absolutely no effect on them.

I've still got a save from before he transformed into a werewolf, just in case I ever learn about some way that he can boost his spell points; I'm guessing it would have to be a potion or enchanted item.

And I've got another save from before he was infected with Lycanthropy, except he's stuck in a dungeon where he accessed a separate portion by using a magic portal-- a brick wall-- except there's no portal that takes him back to the section where the exit is, just a portal to a third section of the dungeon, which has a portal going back to the second section but not to the first section, so he can go back and forth in a loop but can't get out of the loop.

So what I decided to do was go back to my second character, who I'd abandoned in a dungeon where he was looking for an abducted child but couldn't find her. I figured I'd just go ahead and fail that quest, then resume questing with him. I did get to finish exploring that dungeon completely, since I'd learned how to get into the hidden room off of the circular waterway by ducking down and crawling through the underwater opening, as well as how to squeeze through the hole in the wall. I'd been hoping to find the abducted child in one of those areas, but no such luck. And then, as soon as I left the dungeon and clicked on the map to travel back to town, I received a letter from the Fighters Guild telling me that the tavern keeper who'd asked me to rescue his abducted child was a drunkard, and the Fighters Guild-- not Orcs-- had taken her and was keeping her safe in a house back in town. So I chose to leave the child in the custody of the Fighters Guild, which greatly boosted my standing with them.

So far he's been working out reasonably well, although he doesn't have enough spell points to cast any spells at all, so I'm not sure if he'll ever be able to join the Mages Guild.