They gave their imp reach and deathtouch, my scout was big enough to kill the imp in one hit, but the deathtouch brought it to 0 health. Then my steward hit with lifelink, and buffed the lantern scout back up. It survived!
I haven’t seen that, but I have seen instances where Kalitas is killed in combat, and the opponent’s creature is killed in combat at the same time. This triggers Kalitas’ ability to generate a zombie. If there are 3 creatures on board already, the game will prompt you which creature you want to replace, and I can replace the 0 toughness Kalitas with the 2/2 zombie token.
Kalitas has lifelink, so I’m thinking there might be a timing layer where the computer checks lifelink triggers before it checks state based actions of the creatures.