OK, So I accept that the exam board had specifications for submissions, but to fail an entire school because of a teachers mistake is stupid.
If it's just 29 students, exactly how hard would it have been for them to just open them in word (I'm sure they have a copy somewhere, if not I'm sure they know someone who does) and then either print them for the examiners to check, or re-save in the correct format.
Sure they should have reprimanded the school itself, fined them maybe, given them some bad press etc. but failing to mark the students work is just picking on the kids, for a problem not of their making, they were trusting their teacher.
Happy Christmas kids, you just failed your exam because your teachers to stupid to read the specs, and we're too lazy to spend an hour undoing their mistake.