What you have proposed is just a way to increase (nearly double, in fact) the odds of false positive.
The originally suggested protocol: Applicant passes if the odds of the results are about a thousand to one, say, 30 or more out of 40.
Your suggested protocol: Applicant passes if they get 30 or more out of 40. If applicant gets 26 or more, then they are given 40 more attempts. If the odds of the results are then about a thousand to one (that would be, say, 54 or more out of 80), the applicant passes.
The probability of succeeding by chance alone in the originally suggested protocol: about 1 in 900.
The probability of succeeding by chance alone in your suggested protocol: about 1 in 537.
Do you see what you have done there?
Also consider the other aspect of early-stopping, and likely where it gets its name from:
Applicant gets 32 out of 40. This is considered a 'pass'. However, if applicant had continued, consider that they might have only gotten 10 out of the next 40 correct, for a total of 42 out of 80 -- a 'fail', but the applicant does not have the chance to do this; the early stop guarantees the pass, even though the applicant might have failed.
This scenario (and the above-quoted) is why Linda is pointing out that you actually _intend_ to do 80 tests with your protocol, and also why the number of tests should never be modified after the testing has begun. Either you're going to do 40, or you're going to do 80, and that's the end of it.
Put another way, the following possibilities could occur in an 80-trial scenario. We will consider the word 'pass' to be achieving 30 out of 40, or 75%.
1) Applicant passes the first 40, and passes the second 40. Result: PASS
2) Applicant passes the first 40, and fails the second 40 by enough to drop the percentage below 75%. Result: FAIL
3) Applicant passes the first 40, and fails the second 40, but not by enough to drop the percentage below 75%: Result: PASS
4) Applicant fails the first 40, and fails the second 40. Result: FAIL
5) Applicant fails the first 40, and passes the second 40 by enough to raise the percentage above 75%. Result: PASS
6) Applicant fails the first 40, and passes the second 40, but not by enough to raise the percentage above 75%. Result: FAIL
You will note that there are three 'pass' scenarios, and three 'fail' scenarios in there; an even distribution for chance alone. What your 'early stop' protocol does is change #2 from a "FAIL" to a "PASS" -- a very bad flaw, as now the test is highly skewed towards passing by chance alone.