It went like this:

Flavius attacks first, drains morale; front line hero on opposing side (Khan/King) skill attacks, attack is dodged, morale bar increases; yes, Herja increased it later but a little rough math with the star differential between the two and the opponent's starting morale (Endurance 11, no morale saints) says that as soon as Flavius lands his skill attack on round two, the morale hero will be doing a physical attack, even if for that round only - unless he's gaining morale from the dodge.