It's simple precedent over practice, but we'll cover both cases.
You're right in assuming that both could claim and make it impossible, but I'll again cover both possibilities:
Let's assume no one claims in the confirmed Town situation:
There's a 1/8 chance of cult being lynched. This is pretty low, and isn't too bad for odds. The only downside is that someone may be lynched early, but even then it's pretty good odds.
At Night is when things get interesting:
The Jailer has a 2/8 chance of guessing correctly (They can both block and protect), but they're going to likely protect the confirmed Townie. So, assuming that, the Cult will probably use their 1/7 chance to try to recruit the Jailer.
After that, the game becomes increasingly more likely for the scum to win. Have 8 people alive and 2 cult means that the next Day would be lylo with 3/7 cult. And by lylo, I mean they need to lynch the Cult Leader or lose, which is 1/7 instead of 3/7.
Good news is that once the Cult Leader is lynched in lylo, they get 2 shots to correctly lynch the remaining cult.
But, yeah, it's probably about a ~50-65% chance that the Cult wins, which is much higher if they make it past Day 1.
The reason that the watcher makes it unbalanced is that there is no immediate target for the jailer, who is then given a much better choice of whom to protect. The confirmed Town is suspicious the Day after the first, and WIFOM plays heavily into it. The watcher has a 50% chance of finding the Cult with his inspection if it comes back true, and even then, the other 50% chance simply needs to have the Jailer counterclaim, and if he's not, then lynch the other guy.
Anyhow, the chance that the cult wins in this one is about 40-60%. Not much, but I think the other one is much more balanced, especially if you don't want games to end Day 2. The top one gives more suspiciousness through the town and that's a good way to play Mafia.