I was in the end sequence, had just picked up the oval locket, and decided to open my menu and check what the three hearts had to say. When I tried to exit the menu, it crashed and threw this screen.
You should have access to Rank V+ (Effectively VI) gear at this point. Chapter 1 caps you at Rank III. Chapter 2 caps you at Rank V. Remember that you unlock the next tier by having everyone wearing 3 trinkets of the previous rank+.
You can also load up everyone with 5 Battle Energy once you're using Rank V+ gear to get an effective Rank VII, which should really drop the damage you're taking if you're still having difficulty.
