Is Unending Loyalty bugged?

I just fought against the malevolence my eta was near death it just took its turn and UL wore off. my capital ship turn came i applied UL to eta, then the opponents gauntlet starfighter hit my eta, didnt die but lost UL and was not stealthed. It was then destroyed by the next hit.

I have no idea what happened. To me it looked like the gauntlet dispelled UL

Honestly this entire mechanic with the negotiator seems bogus i think it needs attention