Quizmaker 360 - Remaining "in progress" instead of failed

I am having trouble with scoring/reviewing a quiz in Quizmaker. I have a quiz set up that allows 2 attempts, allowing the users to review the questions/answers. This was  published to Scorm 1.2 as Passed/Failed. In my LMS (Absorb) I also have it set up to allow 2 attempts. I am honestly not sure if this is a Quizmaker issue or a LMS issue or both so I am going to ask to both today and await responses. 

Here's what is happening:

If I pass the first attempt - it shows as passed and the task completes in Absorb and there is info on the reporting end. This is correct.

If the first attempt is under the 75% passing threshold, the results do not show up in the LMS at all. (incorrect) BUT - It does allow you to take the quiz a second time and if you pass, it will then show the results on the reporting end as well as mark the quiz as complete to the user. (And still allow them to review their answers which is what we want)

If I do 2 attempts and fail them both, my answers and results show up on the reporting end and the course shows as failed, however, I cannot review the quiz again. I do not want them to be able to take it - but I do want them to always be able to review it. What am I doing wrong?

One other thing to note, anytime the quiz is opened, closed, then re-opened again is being counted as an attempt in Quizmaker, but it doesn't seem to affect the 2 attempts in Absorb.