Made an account just for this bug as well.
Second scenario of Xin-shalast. Harsk encountered Morgiv. It triggered the beginning scene of the second scenario again, showing the villain/henchmans again, allowing me to place characters at different locations; essentially almost a restart of the scenario. However, after placing my characters back at their location, each character had drawn a new hand. I forfeited and found that all my cards, except for the hand at time of forfeit, have disappeared, as if they'd been banished.
Extremely frustrating to lose so much progress.
iOS 9.3.5
Pass and Play, Permadeath off
Xin-Shalast patch
Harsk, Ezren, Merisiel, Amira, Seoni, Kyra