Scorm 2004 missing option reporting status pass/failed option

I have my course completed and the LMS is asking for SCORM 2004 and the Reporting Status: complete/incomplete or passed/failed. I have checked the publishing preferences and I cant find this as an option when I have SCORM 2004 selected. I am only able to see this option when I have internal server selected on the LMS drop down menu.

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