I was able to duplicate the results above on another website by deactivating and moving WF 5.1.2 out of the way. Then moved WF 5.0.9 in and activated it. Failed Login attempts are now being reported in the "Logins & Logout" tab as would be expected.
I think that something broke between WF 5.0.9 and 5.1.1. Release 5.1.2 had the same result as 5.1.1.