It's not really doable to handle grenades like they would work in RL otherwise people would be re-rolling characters constantly. In RL if an explosive goes off in a confined space it's the blast wave/overpressure that does the most damage and will collapse lungs, induce pulmonary edemas and all manner of icky sticky internal badness etc
One of my favorite terms, I believe from Shadowrun, was the Chunky Salsa Effect. Explosives in small rooms does nasty things.
However, I've heard that explosives in open spaces are much different than in confined spaces. If you're in an open enough area, especially outside, then it becomes fairly hard to hurt more than one person because the blast dissipates and the shrapnel goes everywhere except where the targets are. Apparently Hollywood does a lot to make grenades seem more deadly than they actually are. (Note: I've never used a grenade and any knowledge I have on this topic I believe I read on the internet, for whatever that's worth.)
Explosives can act weird too. Ever read survivor stories from bombings? I read one from the Boston bombing about a mother who was standing pretty darn close to the bomb with their child sitting on their feet. Basically all that separated the child from the bomb was the mother's legs. Mom lost her legs but the child was practically unscathed. It's amazing how much of a blast can be absorbed/deflected/contained by meat.
To me this means that a miss in this game means that something got in the way of the blast and the characters were not meaningfully injured. Narrate minor cuts and bruises and being showered with debris, but they can get away without suffering any Wounds. Doubly easy to narrate if they are wearing armor which could also help lessen the impact. A miss is not necessarily a miss, just like a hit is not necessarily a hit.
You need to keep in mind the stuff in the Boston bombing was essentially firecracker filling in a pressure cooker, not TNT or C4, so it didn't produce a true blast wave. You get like 100 PSI off military stuff, and GP bombs will produce that out 50+ meters depending on size. 100 PSI is certain, instant, messy death for beings. Tough to keep doing that in a RPG unless you have a PC roller on speed dial or something...