No, it means that the person was unlucky with their team, but that's not a reason to include them in another team that is still competing. Well, that's just my opinion.
I've always found such replacements from already eliminated teams to be very unsportsmanlike in Vika's tournaments.
Here, after all, they fight at home, and in the fantasy universe that inspired the creation of this tournament, very sharp plot twists happen regularly.
It's like Jorah Mormont, who historically is the heir to Bear Island and a vassal of House Stark, but now we don't perceive him as anything other than a loyal servant of Daenerys, that is, fighting for House Targaryen.
If a team loses, then all participants lose, regardless of the results.
Yes, all participants lose. But it's not a fact that they all died and cannot continue to participate in the Game of Thrones. What's the nonsense here?
You can discuss the nuances, but calling it nonsense is an exaggeration.