1.00 Phasing death

I was playing following zelemir ng+ 1.00 windows and was close to the end. Then some mad ghouls appeared. Most of them died to my blade and spells but quite late, after much slow down and several brief freezes, my characters stopped being able to target them when they were about half way through and they waltzed through to kill me.

My assumption is then when the game slows down something goes wrong with phasing.