There is a difference between setting multiple attempts at the content level vs. the server level.
Setting at the content level (as you have done) means that the object won't report back to the server unless the user passes the quiz or fails it the defined number of times. This could mean that someone who has failed it 4 times, from the reporting on the server, has actually failed it 8 times.
Setting at the server level actually controls how many times someone is allowed to access the training and attempt to get a passing grade. If you set this to 2 then even if someone failed it twice, they would then access the training in Review Mode and their interactions would no longer be tracked, and they could no longer get a passing grade.
The way to fix it, leave the setting on the content level at one attempt max, and set the setting on the server to the value that you want to use.