This bug is intermittent. I play with the suffocation punishment normally, but this was the first time my arena creatures were not healed between battles in the arena. It really was challenging. I actually made it to the 4th round before I lost.
I don’t know if other punishments also get mistakenly applied to the arena as well or if it’s just limited to the suffocation one. I guess the only workaround before this bug gets fixed is to remove any detrimental punishments before I start another round of arena combat.
It’s really random when this bug occurs. I don’t know which time the punishments will be applied or not when I start my arena trials. If it does apply, it will occur every round. If it doesn’t apply at the beginning, I won’t see any punishments for the entirety either.
Device: Apple iPad Air 1
Operating System: iOS 10.3.3
Game Version: 2.4.5 (although the in-game title screen incorrectly shows 2.4.4)