I have my login security set to show login attempts remaining, and set at 3 attempts. Whenever I test the login form with a bad password, the attempts remaining count always starts the count down at “Login Attempts Remaining 0” (when it should indicate 2).
On the next attempt the count will change to “Login Attempts Remaining 1”.
What BPS plugin version do you have installed? Do you have any other Login or Login Security plugins installed? Another possibility could be some sort of caching problem with your Login page. If you are using a caching plugin then make sure you are not caching your Login page.