The problem is you are testing the status after the echo command. The echo command was successful, so it reset the status to 0. Here is some sample code to show the issue
#!/bin/csh -f
sh -c "exit 2"
echo status is $status or $?
echo status is $status or $?
which outputs
status is 2 or 2
status is 0 or 0
Another thing you can do is use #!/bin/csh -fe which causes the script to exit as soon as the error occurs.