3 actions in the past: succession of tenses

Hello.
I’ve got a question regarding the succession of tenses, namely what grammar tenses are to be used when the sentence consists of 3 actions and they are all in the past.
For example
Tom knew that Mike had told Peter that Alice had not passed the exam
or
Tom knew that Mike had told Peter that Alice did not pass the exam

The first is preferable and acceptable regardless of the fact that there are two past perfect tense constructions in the same sentence.

I honestly think the second sentence is probably preferable in terms of how it sounds. Perhaps adding ‘already’ could bridge the gap -

Tom knew that Mike had already told Peter that Alice did not pass the exam

Agreed, but wouldn’t already be redundant?
Couldn’t the direct form be “Tom knew, ‘Mike told/has told Peter that Alice did not pass the exam’.”?

Thank you, Alan.