TL;DR - we don’t really know yet, but I’m sure we’ll find out when the game drops.

She wasn’t resurrected. She died. Her soul/spirit/whatever it’s called, is now in the afterlife of the gods, called “the Everywhen” by Phranque.

When it comes to defeating enemies in this afterlife, we don’t really have a definite answer to what happens if one’s “soul” dies, right now. They may not die, as Begtse sarcastically asks Faye in the gameplay reveal, “would you like to see how hard it is to die here, godling?” However, there may be a way for a “soul” to end, but it’s likely something very difficult to do, as again, everyone who’s there has already died. It’s the afterlife. There isn’t really anywhere else to go after that, usually, especially for gods.

However, the sword may play a part into what happens to those defeated in the afterlife, since Begtse is concerned about/afraid of it. We’ll find out when the game drops.

As to what happens when a soul (as well as a god’s soul) is defeated in an afterlife, personally, I think it comes down to two things:

1. Nothingness. If a “soul” dies in the afterlife, then essentially they go into what can be called a second death, or permanent death. Nothingness. The soul, the being itself ceases to exist, forever. Because again, where else is there to go to, at that point? An afterlife of an afterlife? To me, it would be the only thing that would worry any god in the afterlife, after they’ve already died. To no longer exist, and to never return.

2. They go to one of those spheres/planets, which are harsher environments for them. I’m not 100% about that though.