The Shenandoah Campaign I was playing has had to be abandoned as I believe the campaign system to be badly broken (it is corrupted). My opponent and I finished the first battle and went to the next and soon saw (as mentioned above) that there had been no carryover of losses.

In addition to that anomaly we noticed that neither of us given a melee stage during our turn. As soon as each of us clicked 'End Turn' after Move/Fire our entire turn ended and we were prompted to send our file to the opponent. My opponent suggested that maybe the Optional Rules had changed. I checked, they had, dramatically so. When we began the campaign all Optional Rules were all checked (except Manual Defensive Fire; Artillery Capture; Mixed Organizational Penalty; and Extreme Fog of War. Then, for the second battle, the only checked Optional Rules were Quality Fire Modifiers; Quality Melee Modifiers; Isolation Rules; and Weak Zone-Of-Control (all others were unchecked). Even with that odd selection I can not see how we both could not be given a melee stage during our turn. Surely, the melee stage should be built into the basics of the game and be present no matter what variations we may have selected.
Reluctantly, we have had to abandon our game and campaign due to such major corruption issues.

Attention Ned Simms:
Did you and your opponent encounter any other issues in your Gettysburg campaign in addition to the failed 'loss carryover'? My suspicion is that all the campaigns may be similarly corrupted.

In Turn, without optional melee resolution checked, all movement, fire and melee are in the same phase.