Storyline - Quiz Fail, Course Exit and Reset.

The Player's Resume options control what happens when someone exits and then returns to a course. 

You can only pick one option. In other words, you can't let the user resume where they left off if they exit from some slides, but force them to restart from the beginning if they exit from another slide. 

If the built-in Menu is included in a Restricted course, whatever slides were previously viewed will be unrestricted when the user resumes the course. So the user would be able to jump to any previously viewed slide via the Menu. The only way to prevent that is to not include the built-in Menu in the course. (Another option would be to have the course marked as Failed, and require the LMS folks to reset it. But the ability to do that depends on your LMS--and whether the folks who run it are also willing to do the extra work of resetting courses.)

So let's say you don't use the built-in Menu. You're still concerned about resuming at your Failure layer. I suggest you simply put a button on that layer that jumps to the beginning of the course. After all, some folks might want to re-start the course right away. Otherwise, they can exit and resume there later.