We're moving from SCORM 1.2 to 2004. I have republished the course 7 seven different ways and cannot get Cornerstone to log it as failed or incomplete when a learner fails the assessment. I have tried publishing both as SCORM 2004 3rd and 4th editions, I have tried passed/failed and complete/incomplete choices. I have tried adding a trigger to the failed path to complete the course with passed/failed. Nothing works. The course ends up in the learner's Completed transcript showing Completed and a score lower than the passing score.
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What does it show when you test it in Scormcloud? That's always my first step when something doesn't work as expected in my LMS.