Hi Justin, we've done a few things with LOTO but mostly in the procedural and administrative space. For our LOTO program I built a refresher course this past quarter. While the initial discussion involved an approach such as what you describe, we steered away from it since we have a number of different locations that needed the training (despite the common program, there are some differences in how the equipment is configured in different locations).
What I settled on is writing a short scenario as one of the primary assessments:
"Here's the context and information, make a decision."
Kind of like the "You are here, and can go in direction A or direction B. Choose one." So the learner is entirely applying the information from the procedure (available to review) and given opportunity to self-correct if a poor decision is made.
The safety team really liked how it challenged the learner to *use* the information. The program users (who supervise LOTO work) liked it because it allowed them to actually *do* something different (much LOTO training has simply been instructor-led death-by-power-point).
We did use a similar approach as you describe with slip, trip, and fall hazards (here's a photo of a typical work area, identify at least three hazards - there were 7 total, I think), and it was easier to manage than the LOTO work. But the concept of "here are several pieces of equipment and a work instruction, apply the lock or tag correctly" may be a good approach.
Good luck!