Hello,
If you suffer two losses in Matsuri Fighting Challenge in a row, the event will take pity on you and give you a clone of yourself to fight with lowered stats, which is essentially a free win. This gives almost all players the opportunity to get at least 3 of the max 5 wins for partial credit for the event.

Hope that helps, have a great day!

No, this was definitely implemented. It was announced and everything and it's been happening to everyone I know for quite a while now. After two losses in a row in Matsuri Fighting Challenge, your next queue will be an immediate match against the listed bots. If you aren't getting that, there could be something wrong. If you can provide me a video of your two successive losses without a bot I can look into it for you, or you can submit a CS ticket with the same information. However, please do so in your own thread/DM/ticket, rather than hijacking someone else's, thank you!