Let me put it this way: I am an Instructor, married to an Instructor Trainer. Which means I train people from OW up to/including Instructors. If a person participating in one of my courses is not properly equipped, they do not get to dive. "Which situation, which gear, etc." is irrelevant.
By your own admission, your primary reg did not work.Therefore, unless you had a pony bottle or some other alternate airsource, you were not properly equipped:
From the PADI Instructor Manual: Each diver must use proper equipment for the dive environment. This includes, but is not limited to: fins, mask, snorkel, cylinder, regulator, alternate air source, buoyancy control device (BCD) with low pressure inflator, weight system, appropriate exposure suit for the environment, timing device and depth gauge (or dive computer), compass, knife/dive tool (unless prohibited by local laws or regulations) and an emergency signaling device (whistle, flare, inflatable signal tube).
So, either you needed to:
- get another AA
or
- borrow a reg from someone who was not a direct participant in the course
or
- only do the Rescue Scenarios that did not require you to be underwater
or
- not participate in the course that day at all
Sorry, but those are the facts of the "situation".