I can frequently die, get the respawn prompt, but am still able to regain health and my minions can beat whatever I was fighting. Usually I cannot move or cast, so I have to respawn.
However, when this happens in the arena, the minions can finish the waves, and I can get the option to go to the next challenge area. When I do, I am able to move and cast again. I still cannot pick anything up or gain xp. But I can’t be damaged either, although I am targeted. I finished an arena like this and was able to return to Champions Gate, where I re-spawned. After that I could play normally although I still couldn’t pick up gold. Other items were fine. It did not count that arena as complete.
I also did this and beat a Monolith challenge, picked my blessing, but it WAS counted as complete.
Link to pics and build. My items are pretty mundane. https://imgur.com/a/lPaIWh3
Thanks!