Effectively before and after battle reset are the same, as you can't start a new battle without ending the one you're in first. This bug does ring a bell though: think I might have seen it briefly, but it's one of the tricky ones because so many different conditions have to line up to trigger it. I'll do some more testing, but I THINK I have it caught at this point.
I think the mistake you're making with the HP thing is thinking it's all either one or the other, you either do the right thing and get rewarded or the wrong thing and get punished. In reality, the choices are a. do the wrong thing and get punished or b. Do the right thing and get rewarded, but also still punished (but less).
Using the resist skills is about buying time with energy. If you can get back to fighting, you can end the battle a lot faster (and with more "dignity") then if you fuck them all. Fucking your way to victory is "free", but it takes a lot longer, and raises your sex stats, which may have consequences later.
Thanks though, even if I don't use all it, I do appreciate feedback.