I'm having the battle loop issue too.
I can continue playing by following the advice shown in this thread:
choose to continue the battle and once you are on the battlefield, select someone in chat and click to visit them.
I have been able to negotiate some sectors (even the one where I was fighting when the "battle loop issue" started) so that I could conquer a province (needed for today quest).
NOTE: even after negotiating the sector where I was struck, the "battle loop issue" has not ended (i.e. now I own the sector but the battle still goes on).