So what impact does the LM-7A failure has on China's later launches this year? - 1st stage/booster engines - LM-5 to 8 affected - 2nd stage engines - LM-6 & 7 affected - 3rd stage engines - LM-3 series affected; *maybe* LM-5 (but not LM-5B) - others - TBD
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Failure was in the 3rd stage. Originally a LM3B upper stage, I think they have an incompatibility issue between the LM-7 and the upper stage. They need to build 7A her own 3rd stage instead of using one from a different rocket.
We don't know yet, although the first rumors did come late which might points to a later phase issue. It could be the engines (from the trusty LM-3A/B/C series) or (as you said) control/structural issues/GNC issues specific to this rocket.