"1914_0820_01s_Nancy" Protected hexes questions

[KAreil]

I'm playing through France'14 with my loyal opponent krmiller/Ken and we encountered something strange:

At the Allied 3rd turn the reinforcements for the French (retreating troops) arrive on the Eastern edge but on the German 4th turn their reinforcements (pursuing troops) arrive. This has routed most of them, I'm quoting Ken:

Last turn I moved my arriving units as far as I could and could not get them out of the protected zones.  Bad enough they arrive shot up, disordered, and with high fatigue while the Germans appear to be at full strength but now a large number of them are broken and probably out of the fight.  Then on this turn I bring two stacks of reinforcements adjacent to a couple German stacks and nothing happens to them, they even shot at my arriving units.  Seems only the Germans get the benefit of protection for their reinforcements.  And once again I can't move all my units far enough to get them out of the protection zone. 

Is this really intended?
I don't know much about that battle but routing all the French troops without chance to move them out of the protected hexes in time seems odd - were this troops really in such a bad shape?

Is this how this should work and is factored into the balancing scenario?