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That lab has been buggy since the moment it was first coded.
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Hey everyone, I'm one of the developers.
After taking a look at this issue (there are a few people experiencing it at the moment), we have determined that the error is a result of the data for the "confiscated" Pokémon party during the sidequest being corrupted. The cause is the information about the party being overwritten along the way during the mission, due to an unknown cause. The result is that the affected user's Pokémon party is completely lost, forever, and it's impossible to continue the game.
I got in touch with Rand, and fixed his savefile by completing the quest on his part and giving him back his lost party manually. I will fix any instance of this bug case by case the same way, so if you or anyone you know is experiencing this, please get in touch with me through Discord or Reddit (since I'm not very active here on the forums). I'm really sorry to hear that this is happening, and we're getting this fixed as soon as possible for the next patch. Thankfully it's a very rare bug. Good luck!