Bad bamboo will break like yours did, never had bamboo that smelled bad so that could be an indicator. Unfortunately, there is no way to tell if you got a piece of bad bamboo until it fails.
I bought a 25 slat bundle of absolutely beautiful bamboo once, every bow I made from it had a bamboo failure, bad bamboo with no indicators, sure looked good to start with.
You did sand the nodes too far down which weakened them.
I sand off failed bamboo to about 1/16", don't see the glue line but have the bamboo ground off flat across the back. I like to leave a little of the original bamboo to glue to and use a toothing plane iron to rough it up like Roy does.