Sorry, "everything stops" in my original post isn't clear enough: music keeps rolling, you can queue up more commands for any characters with a full ATB gauge, you can trigger the "trying to run away" animation, you can pause and unpause, but combat will stop making any progress; none of the queued character actions will happen, ATB gauges won't fill. I haven't stared at this state for longer than maybe 5 minutes, so MAYBE it eventually resolves. My solution was to just save state way more aggressively and play around the bug and revert state if I messed up. Sorry for the late reply. I had it set to notify me and never got an email.
I don't know what the correct way is to report bugs and i did a ctrl+f in the readme and a search in this forum. Sorry if this is the wrong venue and I missed something I should have read. I first encountered this bug farming for experience fighting Allosaurs in the forest by Thamasa in WoR. Having Alexandr equipped to Cyan and killing an Allosaur with a physical attack, triggering Raze, shows the reflect animation and then everything stops. This also happens when fighting through Phoenix Cave with the Necromancer-like guys in there. I would guess but have not confirmed that this would happen no matter what the provenance of the reflect status is and no matter who has the reflect status. I don't know of any way to perform a reflect-able action on character death, so I can't say whether this only manifests with enemies death countering or also occurs at other times. I'm using what I believe to be the most current Zsnes for Retroarch on Windows. Please let me know what other information would be useful and I will try to gather it.