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PVE encounters don't use the custom battlefields in houses, instead giving you the usual grassfield that may or may not occasionally get a big bush. My proposed solution for future proofing is to give a toggle to the Encounter Tool that makes it so you can decide if it accounts for a custom battlefield or not.
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This is only sort of a bug since it's only been intended to be used with player houses where the only types of battles that happen are PvP.
That said, I've adjusted it so that it should apply to any battle that gets started with a player who is inside of a house with a custom arena.
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• Fern
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So after messing with it, it seems that the game simultaneously attempts to load the generic grass battle map and the custom battlefield map, with the grassy one layering on top. This also results in things like flowers, bushes or patches of tall grass appearing. It seems to account for furniture in spite of that still, funnily enough.
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To elaborate what Fern's talking about- normally when a fight takes place with a custom battlefield, it utilizes just the housing tiles and collision exclusively which overrides the grass map. With PvE fights spawned with the battlefield however, you get the house tiles layered OVER the standard grass map, with flowers, bushes, and other objects on top. This only affects PvE, and not PvP.
TLDR: The normal grass battle map is being loaded alongside the custom house one.
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This should be corrected.