I am exploring the engimatic grotto right now and all my pets were at 100% health when the prompt came up for me to decide to check out a freshly dug hole or ignore it. When I checked it out, all my pets were knocked unconscious? I didnt even get to see a message telling me what happened. Is this a glitch or is that something that just happens? Sorry, new to the game and very confused

This is a one-off event that I believe was at the time of conception meant to serve as a 'be careful inspecting things' kind of thing? (but it uh, never quite worked that way because mostly it just confuses people)
Inspecting things generally speaking has two outcomes that are most commonly a battle and very rarely an eggling/hatchling, no need to worry about Rocks Fall, Everyone's KO'd