Death of a dreamer question

Hello,

The Death wisdom card step 3 says to "resolve the II-42 card with the lowest number" - looking in the secret cards it looks like II-42 II is the lowest, which is a Fate/quirk card. Resolving it would put it out on a slumber map, but the next step is to perform an awakening which will discard it anyway, so really it just goes to the bottom of the Fate deck?

Glancing at the front of the next card in the sequence, II-42 III, it's a flaw card - so if I die again that would be added to the dreamers deck as well as the flaw added in step 2?

Thank,

Robert.