It's fine to report problems in the comments :)
The wraith thing is a little complicated. Technically, it's working as designed, and the point of the encounter is that you have to manage your use of the haunted remains. You can even use one remains card to take care of multiple wraiths, leaving you with free "burn cards" you can use to manage the demon clock.
But! I do agree it's one of the most stark situations where the game should at least notice you're out of options and *tell you*, since it feels like a lock now (despite this being the result of your decisions during play). There is unfortunately no room to implement this in the PICO-8 version, but I'll take a look at other solutions that make this clearer.