It is part of our company's policy to allow learners to attempt a SCORM quiz (not an assessment learning object) twice before having to redo the entire course. Right now there is no configurable way (I have worked with Absorb support) to allow two attempts on the SCORM quiz and communicate with the LMS correctly.
We do the same. We upload a quiz as a SCORM object, set 'must complete' as 'exams only,' then turn 'lesson contains assessment' on and set the maximum number of attempts there. You may or may not turn on Allow Failure for the course as a whole.
The settings in your SCORM file will affect how the results are interpreted by Absorb. Courses with failed tests (after the maximum number of attempts) could show as Failed, In Progress or Incomplete but still give a 100% progress score, or as In Progress and 0% complete. This is where the ability to report course status rather than completion % in Learner Progress reports would come in handy.