Does quiz remediation allow failure?

In prepping for completing a training I wanted to test out the remediation feature so I created a new Captivate 7 project and attempted to implement it there. What I’m finding is that with remediation setup that the quiz can never move forward without the user selecting the correct answer in the quiz. If they keep selecting an incorrect answer, the remediation loops without ever failing the user. Once the user selects the correct answer the user always has a positive score and doesn't lose points for answering the question incorrectly.

In my test file I have two slides that both have a next button set to “Return to Quiz.” Then I have two T/F quiz slides that are both set to ‘true’ as the correct answer. The first quiz slide uses the following values:

On Success: continue

Attempts: 1

Failure Levels: 1

Last Attempt: Jump to slide

Slide: 1 Slide 1.

The second quiz slide uses the  following values:

On Success: continue

Attempts: 1

Failure Levels: 1

Last Attempt: Jump to slide

Slide: 2 Slide 2.

When I preview the project and I get to the first quiz slide I select False as the answer, click submit, see the incorrect caption, click to go back to the first slide for remediation and click the Next button to return to the first quiz slide. If I leave ‘false’ selected and click submit again, I’m routed back to the remediation screen again. Regardless of how many times I fail the question it doesn’t seem that Captivate will every allow me to fail the question if I have remediation options turned on.

After a number of times of failing the question and I select the correct answer, the results slide always shows that I got 100% of the slides correct.

In an attempt to see what’s happening behind the scenes I also added quiz variables to the quiz slide. I added Attempts, Points Scored, Correct Answers, Total Quiz Points, and PassFail. Regardless of the number of times I’m sent back to the remediation screen the number of Attempts never changes. Even if I increase the number of attempts for the quiz slide, the variable never changes it always stays at 1.

(Screenshot after 8th time going back to the remediation screen which is visibile due to a variable I setup)

Is there something setup incorrectly in my Captivate file or is there something not functioning properly with Captivate?