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(2 edits)

I can confirm this; using the reset lever makes the Hugger-girl boss unkillable (she takes damage but can't be defeated).

Edit: The above only holds for the 0.10 build.  I just now saw the .12 update and will test it out there.

Edit #2: The .12 update appears to fix this on multiple bosses.  Special attack openings may not show up, but bosses are killable, even on reset.