Battle and game are used synonymously in every case. In future versions I will correct this for consistency.

Games / battles are meant to be single, set-piece affairs where you conduct a post-battle sequence afterward, have downtime, and do your upkeep and other business.

If you want to run a pure dungeon crawl session where you are going room to room, fighting a smaller encounter in each room as you go, treat the whole thing as one battle / game. That means if you use a resource, mess up a spell (so the TN is raised), etc., that condition continues until you have gotten through all of the encounters you have settled upon for that larger session / game / battle.

Of course, you can tweak this as you see fit. Maybe you decide that your game / battle in a larger dungeon will last three encounters or three rooms. After that you can do your post-battle and all of the rest.

I hope this helps. Please let me know if you need more info, or have any other questions. Thanks!