There is a battle at Faerina's Shrine that I had been stuck at for a while and have no idea if its a glitch or intended.

The game starts out with one Decayed Archer (top), Mage (forgot name) (middle) and another Decayed Archer (bottom), but then any time someone is defeated from the opponents, someone else takes their place. Almost every opponent is at least 3 stars.

I am unsure if this is a glitch or supposed to happen- they are level 25 and my two battle pets are both level 29.

I was stuck at it for a good few days, hence the title was that, but I think I might be finally done with being stuck. I defeated 3 opponents in the middle in a row and there were still two at the sides.

I beleive you don't start finding Decayed enemies until you reach umbra forest? If you're in Umbra Forest, your first goal should be getting the third party slot unlocked at Sanctuary of Saerielle.
Since you have a Water (should be Tanking, in slot 1. Str/Agi oriented gear (Assassin) and light pet (should be acting as healer; Int gear, secondarily either Dex oriented (Evoker) or Agi oriented (Illusionist)- most people run light healers as int/dex), you'll want your third slot to be an Attacker element- Either Air (Str/Dex profs, Myrmidon gear) or Fire (Int/Dex profs, Evoker gear)


Your current gear is pretty underleveled and low ranked, so we've tossed some better stuff over

Thank you so much! That certainly helped! I wasn't the most sure what I was doing wrong- I read a tutorial regarding battling, but at that point already had a few leveled up pets and didn't really wish to restart.

Thank you once again!