Hopefully it is fixed in the demon fight too. There I seem to lose rounds as well.
Also I don't lose Rabbit in Heat after Guarding, despite reducing the heat stack. Without the rabbit in the team, I don't see how to remove the condition otherwise.
It work for me then I tested it so Iit should be i assume.
The new patch that comes out today actually reworks the "Rabbbit in Heat" status effects a little bit and makes it easier to lose the effect. Now condition also gets removed after a set number of turns. Also should fix the guarding thing as well i think.