However, how does it work if no such answer was created?
I believe no bounty is awarded if the bounty conditions do not match.
where the bounty was awarded to harrymc whose answer was 1 hour before mine, both have 2 upvotes and both were posted before the bounty.
That's not quite correct.
The bounty was started on 20th.
You posted on Nov 21, 08:28, harry posted on Nov 21, 07:46. Community chose harry's because he had posted prior to you. Seems fine to me.