Make no mistake, this is definitely an excuse to test the waters and see if they can just invalidate an entire election and choose the winner for themselves. Which, if it works, they will proceed to do with every election in the entire country to force a Republic victory in every state, district and municipality and create the permanent single-party system they've always dreamed of.
But also, yes, this is a hella annoying situation for a state to find itself in and it's fortunate it happens so rarely. I'm honestly wondering if was planned all along as part of a ploy to convince Alaska to get rid of the instant runoff system (since if they were from opposite parties, it would at least say so on the ballot and people would know which is which). I do admit they've been going about it the wrong way anyway. The point of an instant runoff system is to give more parties a chance; having the existing ones just run more candidates defeats the whole purpose.