The game being reset makes sense - time and resources have been spent to make it happen, and it's best to get as much value from those resources as possible.

Of course this means learning the lesson of how the first defeat happened. You reset so that you can learn more lessons. If they ignored the lesson of the first defeat, that's stupid. But the reset itself makes sense.

The reset isn't the problem, the entirely nerfing the Red team is the problem. The US took steps to fail to learn from the exercise before it had even finished.