So I had this happen to me. I died to Zuggtmoy when we lagged trying to get to the DDoor. I came out the other side of the DDoor dead but with a fire dot bug on me. I figured I would log out and back in to clear it before I rezed. When I logged back in I got the message for real death the dot was cleared. I was able to wander around with my group. They took me to a rez shrine and as soon as I rezed I was sent to land of the lost souls. I don't know if this is working as intended or a bug. Maybe to prevent Alt-F4 saves. So fare warning do not log out while dead if you have lives left.