Cruel Act 2 Babala Fight Bugged

I completed the Babala fight in Act 2 cruel for the first time, and it seems the progression is bugged and the fight is repeatable. The progression is stuck at the "Explore Traitor's Passage" despite completing the fight and moving through the next story quest at the gates.

I went back when the instance reset and beat Babala again, but the same thing happened. Loot drops, but the animation of Babala's death stops partway and Babala vanishes. I got a screen shot of the first try when I returned to the room and Babala's body is frozen in the air like she was mid-animation when the bug hit. It seems like this quest is permanently stuck at this point.

Another note - after both Babala kills mobs that I had cleared outside the room spawned back in as if the game thought I died or something.

The same thing is happening to me. Does this prevent you from ascending a 3rd time? Or can you travel back to normal Act 2 for that?