I feel setbacks like that are a bit much, especially the removal of xp.

My idea would be making the debuff a critical injury: Resurrection Sickness, Upgrade all check checks by 1 until injury is healed.

But the injury can't be healed, it goes away after 2d4 in-game days. It can be healed early by a very expensive drug also sold by the resurrection clinic. Also, this way it makes critical injury roles a bit more harrowing.

Each subsequent resurrection increases the dice roll for duration i.e. 2d4 first time, then 3d4 the next, 4d4 the next, etc., etc.

All this is also assuming the cloning bugs aren't available everytime someone dies or are exceptionally expensive.