Characters Deleted on Hard Difficulty for Two Account

Hello,
I encountered an issue in Diablo 4 that I believe may be a bug. Two players were playing co-op mode on one console, each logged into their own accounts. After the characters died while playing on Hard difficulty (not Hardcore), one character from each account was deleted.
I have checked the “Undo Character Delete” option in the character selection screen, but it was not available for either account.
Could you please investigate this matter? This behavior does not seem to align with the game’s intended mechanics. Any assistance in recovering the characters or understanding what went wrong would be greatly appreciated.
Thank you for your time and support.
Best regards