Thanks for your reply @TrishaMeyer1
I made a flowchart to illustrate what we're attempting to do. 
I added a Mastery Path to the Pre-Test Quiz. If students get a 60-100, they have access to the badge.
If they got a 0-60, then they need to do a reading, assignment, and an exit test. If they get a 60-100 on the exit test, they move onto the badge which is just a page.
The idea is when students access the badge page, Module: Week 1 opens up as it has a pre-requisite module, the Mastery Paths Chemistry Competency.

I added a separate Mastery Path to Exit test, where if students receive a 60-100 on it, then they can move onto the Chem badge. If they get a 0-60, then they must complete the assignment, the reading again, and the exit ticket again.
Then, I added module requirements:

Finally, I added a pre-requisite module to Module Week 1.
When going through it in test student mode, I completed the pre-test and failed it purposefully. Module: Week 1 then becomes unlocked which I do not want to happen. Any idea what may be happening?
