Okey, so this one was a little odd. Earlier today, Kai was 'chanting up a rogue (Avedis) to fight off a higher level creature on the same square. When I came to the dagger, my screen jumped and I hit "Use" instead of "Enchant". Normally, of course, this does nothing, but in this instance Kai abruptly found herself at an LM with other parties wondering why in Valorn she'd tried to hit the critter.
So, long story short, Kai somehow employed the "Use" function on a rogue's dagger, attack text showed, and she died.