Hi Vince, welcome to the forum.
I think adding the extra water was where you went wrong, it looks pretty wet in there.
I am not an expert in the paper towel technique but have had a similar problem when using newspaper. Water evaporated from the cuttings and paper and condensed inside the bag, eventually areas of the paper were near dry and the bag was loaded with condensation. I switched over to sphagnum moss in a little plastic tote and it has been great.
But, if I were to try and tackle your current situation I would: take the cuttings out, turn the bag inside out and shake the water off, unwrap the cuttings and check them out, soak them in water for a day if they are looking dry or pot them up if roots are formed, get the paper towels at the right moisture level and reassemble.
Drops of water are bad news, either they are breeding grounds for bacteria and mold when sugars and starches from the sap are present, or they are super pure water that will cause plant cells to burst because of osmotic action.
I second Dominick's suggestion of using sphagnum moss, get some, and take more cuttings in late March before bud break; you will be assured of success. I will not be starting any cuttings for 2 months because the days are so short in the winter that it is hard to keep young plants thriving, this will be good practice for you. Good luck