Strange, I actually received 3 copies of your feedback, so it's technically working fine, but maybe something in the connection makes the game think it's not working.
Either way, thanks for the feedback! Balance is something I haven't spent too much time on yet, but you're not the first to point out that that fight is busted. So that gives me a clear target ;). I'll tweak that for future builds. Probably just reduce the healing a lot, since that seems to trip most players up.
Your armor is always lost at the beginning of the next turn, but it seems that wasn't fully clear. The only status effect that directly affects armor is one that lets you retain it for more turns, after you match a lvl3+ shield. I'll see if I can make that more clear in the future.