Is it a bug that in the ambiance mode an event happens that made my Omega Kerfur disappear into a bloody mess?

from what I read it was supposed to happen because of an entity in the game but in that mode I don’t think such things should exist, I was confused in how to bring my Kerfur back nor know how to save and sleep again so before doing anything more I just jumped off a tower to restart my save

Kerfur is fine now but weird that I had to outright die to go back to a save to fix it