Here is the situation:
-Load into a game already in progress, or passed the character selection menu, as a monster.
-As the monster, the skill choices and monster type are already selected (since you loaded late)
-At level 1, pre-selected skills work fine, no issues
-At level 2, skills will wipe or reset. The skills you choose in the level 2 evolve are now your only skills.
-The issue appears to be that the points for the level one skills are not put back in the skill pool. effectively lost. In short, a level 2 monster will have level 1 skills.
-At level 3, skills selected by the player remain. The level 1 missing skill points are now back in the skill pool. Effectively leveling twice at level 3.
I have had this happen to me once. I also played a game later today, where another player loaded in late as monster, and described this same situation, but died at level 2. I usually don’t load in late as monster, so I can’t say this will happen every time, but it does appear to be a bug.