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My understand from Justin is that PoZ is constantly checking so the phase after CWD was activated PoZ would then be negated.
Territory-Class CharacterTerritory Class characters have abilities that activate when placed in battle in the same way as all other characters. The abilities also activate each time the character is placed in a territory. Territory Class character abilities that are active outside of battle are active while the character remains in the territory. This also means that their ability ends when they leave battle or territory.
Territory-Class CharacterOnce Priest of Zeus is placed in territory, the ability continues while he remains there, and cannot be interrupted. Covenant with Death played afterwards will not negate him, but one played prior will. If he enters battle, he activates again, and Covenant with Death could negate him then, or negate him once he returns to territory, which is another activation.