While I can't confirm if this is expected behavior or not, it sounds to me like this is along the same principle as being eaten by a griffon while sitting inside an inn in the Commonlands.
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Live:
Nubben, Level 80 Rogue, formerly of <Silens Dauthus> now of <Dark Bane> (Mithaniel Marr)
P99:
Nubben, Level 16 Rogue
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