ReCaptcha and FancyCaptcha bouncing back after correct answer!? Ie. they are broken.
OK, so turns out after pouring over the code FancyCaptcha was really fine. I just included an escaped character (single quote) inside the double quoted key and did not realize PHP treats an escape slash as a literal slash when the following character does not technically require escaping. C++ would have produced a single quote. But PHP produced \'.
Still ReCaptcha seems to be broken for some reason, but it's probably safe to not point fingers at ConfirmEdit, since it is an extension of ConfirmEdit. I'm not sure, but it seems like these captchas could be setup to fail more gracefully. For instance an error is indistinguishable from a wrong answer. The form could at least say the last answer was wrong to distinguish between that and a technical mishap.
CASE CLOSED.