Knowledge Checks

Hello all!

I am struggling with knowledge checks and I can't figure out what I'm missing. I want to create a knowledge check that will allow 2 attempts when the incorrect answers are selected the learner will be taken back to the knowledge check which will be reset.  In settings, I have selected "return to initial..." for the correct and incorrect layer as well as the base layer. This will reset but then does not stop the learner after 2 attempts rather allows them to go indefinitely. When I unclick "return to initial..." the 2 attempts are enforced.  In either scenario, number of attempts selected is 2 as I checked for the base slide and layer.  What am i missing?  How should my knowledge checks be set up to reset after each attempt but only allow 2 attempts before showing the correct feedback and moving to next slide?  

Any guidance would be so greatly appreciated!  Thanks in advance!!