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This is a bad example; according to the rules, a player with Champion of Champions cannot be selected for the Factions Battle.
Quite the contrary, it's a normal example. Instead of letting things escalate to a point where a player with Champion of Champions wins the Qualifying Tournament in Factions Battle, and then being told, "Sorry, but you won't be allowed in the Factions Battle," it's better to immediately prevent the conflict (which, in my opinion, is inevitable in the scenario I described).
