This issue re-surfaced with another course and I wanted to provide some additional info on the solution:
As we all know, when a question slide is created with the Quiz Manager, it will include several response boxes on the slide (for responses to correct/incorrect answers, re-tries, etc) depending on the quiz settings.
In this other course we discovered at one point during development that the question slides did not have the "Try Again" response box, which is what Presenter displays in the event of a question being answered incorrectly when students are allowed infinite attempts. It may be that it was deleted inadvertently, but more likely we encountered a glitch in Presenter which removed it when Quiz Manager settings were changed during development. Unfortunately, adjusting settings would not re-insert the "Try Again" response box, so we created a new presentation with a question slide and cut and paste the response box into all our question slides (after we formatted it to look the way we wanted it to). We then tested the course and it now responses correctly to both correct and incorrect answers.