I updated a server from 3.0.1 to 3.1.0. The quests got reset, and I have 2 lives. I am no longer in a party (which had 266 lives and 120ish quests completed.) A down-date to 3.0.1 got us running again for now.
Btw, the 1000 quadruple dirts are for real? (If so, why?)