I don't claim to be an expert at this event, but I've participated at least a dozen times so far and some features are slightly unintuitive. If you've failed the event and not known why, here's a couple things I learned through trial and error.
The beginning portion of the quest is pretty straightforward. Listen to Polly, eat/drink/emote around the fire and collect kindling. Kindling locations will show up on your HUD map as circle points. The kindling can be found at the base of specific trees in two forms, wet and dry.
When you collect kindling, picking up wet kindling will spawn a handful of various insects. If you don't want to fight more bugs, leave the wet kindling be. After grabbing the dry kindling, you actually have to go back to the fire and deposit it until the meter is completely full. Just picking it up doesn't count for anything. The kindling will eventually respawn after a short time, so you're free to keep going back to the same 2-3 spots over and over.
Where the event ending diverges is at the point where the robot asks you to look for the missing campers' belongings. They're scattered around the various structures around Camp Adams, and depending on what selection you get, the final battle will be different. The belongings will show up as a diamond on your HUD when you're nearby. All of them are present at man-made structures, not randomly scattered in the woods and grass. They're pretty easy to find.
So far, I've seen two options for a final battle. One is a mid-level wendigo that attacks with a small swarm of insects, and the other, much more difficult version is three waves of insect swarms that attempt to snuff out the campfire. The wendigo fight is really straightforward and rather easy for high level players. It's a one star legendary enemy with a unique look. As always, be a good neighbor and let everyone get a hit on it. It stands no chance against Jimmylvl200 with an explosive gun. Everyone knows this and you don't have to prove yourself.
When you have to keep the campfire lit, your goal is to collect kindling, in the same places you were asked to collect at previously. Again, picking up wet kindling will spawn a handful of bugs, provides no fuel for the fire and again you have to physically deposit dry kindling into the campfire. The problem here is that the fire's health meter rapidly dwindles and must be recharged while simultaneously killing waves of insects. The best strategy for success is to collect kindling from at least two trees, wait for the fire's health meter to drop to about half while killing insects (VATS and any other AoE effect is king here) and then completely refill the fire's health with what you picked up. Repeat as needed until you win.
If you're a melee build or not well suited for quick VATS targeting or sustained AoE, you're probably being much more helpful killing off the insects. There's a LOT in a well-attended event. The fire seems to deteriorate much more rapidly the more enemies remain present. If your character uses ranged weapons, collect kindling, then stand in front of the fire waiting for the fire's health to get low enough for a recharge. Using VATS and even just one rank of Gun Fu perk (agility) to kill fast moving bugs is the strategy I personally use as a high AG/PER rifle character. There's usually more than enough participants by the time the end fight happens that I barely care about shooting anything. I just focus on keeping the campfire healthy. So long as you stay busy, you're contributing to success. A lvl 5 player diligently collecting kindling is worth way more than a lvl 400 gazing at their pipboy. If the state of the campfire worries you, grab some extra kindling and stay near the fire if you don't have anything to kill nearby. Teamwork makes the dream work. Always be ready to have the ball passed to you while in an event.
If the fire goes out, the event fails. That's it. Everyone loses.
Keeping it lit should take priority over anything else. If you see that no one is maintaining it, or they're not able to keep it going by themselves, take it upon yourself to stop killing bugs and man the fire full time. It can be really difficult or impossible to keep lit if you're the only one trying to feed it, especially if half the server is participating and there's a thousand enemies flying everywhere, which is why I thought to write this up. It seems like a lot of players just don't know or stop looking at what the event requirements are in the upper right when some crazy fighting sparks off, then give "confused?" emotes when the event fails all of a sudden. To be fair, it's not exactly intuitive. I've had my share of fails, and eventually discovered the mechanics through trial and error.
As interesting completions rewards, so far I've gotten the s'more recipe once and 3-4 possum badges. You don't get a badge every time. It seems to be a 25% chance, if I had to guess. You also have a chance for the standard event completion RNG legendary piece, as well.
edit: if you have additional advice to share or noticed that I'm in error about something, please speak up!
edit: If you happen to do this event solo with the more difficult ending, the three waves are much, much smaller, and the fire will regenerate it's health up to full in between each wave. thanks /u/mannysandov.
edit: bugs and glitches do exist as of 5/13/19, particularly with missing camper's belonging not registering upon being picked up. If this happens to you, it's not your fault and you're not an idiot. Thanks /u/pastel__pink.
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