Timed Quiz Not Resetting Properly

I have a Freeform drag and drop question that is timed and the scores are reported to a results slide.

Learners may retry the activity as many times as needed to improve their score.

If the user completes the task, before time runs out, they are instructed to select submit and their scores show up in the results slide. To retry, they can select the "Retry Activity" button, the question slide resets and they can retry the activity and the new score will show on the results slide. Unfortunately this only works if the user selects submit but not if the time runs out.

If they run out of time, and select the OK button on the "Time Limit Exceeded" box, they are moved to the results slide before they can select submit. Now if they want to retry and click the "Retry Activity" button, the question doesn't reset. The objects are still in the same place the user had moved them to the first time.

If I didn't have to time the question, it would work exactly how I need it to. But alas, I do.

Any ideas why this might be happening? I've attached the file in case anyone wants to look at it.

Thanks,

Michelle