Limited Attempts Issue in Canvas LMS

Hello Community! I'm having issues with our Canvas LMS (SCORM lti tool) acknowledging limited attempts for SCORM packages. It's sending grades back to the gradebook, but allowing learners to launch the modules indefinitely after the set limit of attempts. We typically use SCORM 2004, 4th edition, but I've tested in SCORM 2004 3rd edition and SCORM 1.2 with the same results. I don't have a retake option setup in my Storyline module either.

So, I'm looking for help on the proper setup between Storyline and Canvas to find out what I could be doing wrong.

Additionally, is it still true that the LMS will record the last grade sent, no matter if it's higher or lower? That's been my understanding and just wondering if anything has changed. It seems to be the case when I test, as it records one attempt, but just keeps overriding the last grade with the latest grade.

Thanks in advance!