I got softlocked in a battle due to the a cursed item not allowing me to fight, a goblin got me in wrestling position but he's out of stamina and can't change the grappling status, he rest one turn and tries grapple on the second, is there any way to fix this without restarting the save?( ironman)

You could post your save file and this description of problem in Bug report thread, maybe the developer will help.

I think it's possible to continue the run, if you edit your save file and remove the Tiara of Control from your character equipped items. It probably will disappear in the game if done right.