I am actually thorough enough to have all party members fully rest, restoring their HPs, Stamina, and Spell Points fully, while making sure that no buffs remain, before levelling up. This is to ensure their base stats, skills, and resistances are up to par.
I consider the 3 Ds (Death, Disease, Draining), to be permanent, so I will reload if that happens. It's all about RNG, similar to how I will save/reload if desired item doesn't drop. This game is full of bugs, particularly that hole in Trynton near the entrance to AT Road, that will instantly kill your party, or the Umpani obstacle course.
Having said that, while there are many flaws with vanilla W8, and many unfair battle occurances (Death, Disease, Draining while you're unable to cure them), also, sometimes, the game will spawn higher level enemies than you can handle at the moment, overall, this game is fair. You can surprise enemies, and be surprised in return. With X-Ray, you can see them coming long before they pose a threat to you.
I consider it "Schrodenger's W8", where there are multiple occurances of the same battle. There are multiple universes, and it's up to you to pick the best universe (result) of said battles, where you triumph, and maybe gain skill ups, and decent items.
Having said that, and calling me softcore, I will remind critics that I DO indeed, once I'm powerful enough, 100% the game fairly. I will fully explore all maps, grab all obvious and hidden items, open every treasure chest, fight all set battles (fairly killing all bosses), do all quests, max all skills fairly, with no cheese (except those 5 previously discussed).