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In the conventional framework for failure diagnosis of partially observed discrete event systems, it is assumed that, for each event, the corresponding output symbol is determined uniquely. However, this assumption does not hold in discrete event systems such as a mobile system, where an output symbol depends on not only an event but also a state at which the event occurs. In this technical note, we model such discrete event systems by Mealy automata with nondeterministic output functions, and consider a decentralized failure diagnosis problem that requires any occurrence of a failure should be detected by at least one local diagnoser within a uniformly bounded number of steps. We introduce an extended version of codiagnosability as a condition for the existence of a decentralized diagnoser. We then present an algorithm for verifying the extended codiagnosability condition.