When setting a quiz completion tracking to 'receive a grade', and 'any grade', a student will not be marked as Complete until they receive a passing grade.

Any restrictions based on this will not work until the student is passed.

Assignments with this same setting work correctly.

I was using this setting for activities that I wanted students to have an attempt at, and gague their level of understanding.

Using minimum attempts 1 gives the result I am after, but the setting is very deceptive.