So this is intended behavior? Seems really odd, but I guess I can see it?
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Fixed in 1.3.4: The Watchtower bug that allowed a Watchtower newly drawn during the handling of the effects triggering of a gain to apparently ignore the lost track rule. Main example was when a Rats was gained, trashed with an existing Watchtower, the on-death Rats effect drew a new Watchtower, which could trash the same rat again, for a new on-death Rats draw.
t plays a Bishop.
t gets +1 Coin.
t trashes a Fortress.
t puts a Fortress into their hand.
t gets 2 VP.
If you play Crown in your Action phase via something that lets you play Treasures (like Storyteller from Dominion: Adventures), Crown will still play an Action card twice.
Storyteller > Crown > Swindler (x2) > have $5 > draw 5 from Storyteller