They drop to much loot, in the way of armor at least. I did it only once, and I got three suits of armor outta the deal.
I did that and got two, but also, remember that most of the consumables are "vanish on reset" fruits.
When my group did it, we got 1 suit of armor, IIRC, but also some clothes. Two swords, three shields, and an axe.
I don't think this is a bug. What you fight, and the lack of consumables (beyond the vanish-on-reset items from part 1) balances this out, IMO.
How is this a bug?