Forum:Anti-heal vs Prime Material

I consider myself a seasoned yugioh player with qualifications of a high level judge but for the life of me I cannot understand how these two effects can resolve without an infinite loop. The setup is Bad Reaction to Simochi or Nurse Refucule the Fallen One vs Prime Material Dragon.

According to Konami the effects should cancel each other out and cards such as Secret Barrel deal damage and Gift Card would give life. I ask how this is possible since you have 2 continuous effects and rulings on cards such as Rainbow Life. Rainbow Life and Prime have essentially the same effects.

Rainbow Life: "Discard 1 card. Until the end of this turn, whenever you would take damage you gain that amount of Life Points instead." Prime Material: "Any effect that would inflict damage to a player instead increases their Life Points by the same amount"

Now to me these effects are essentially the same aside from some wording and the fact that Prime Material would be a continuous effect. This makes me question why would Prime have something above a trap and in my mind if you have 2 effects like this there would be an infinite loop effect which is supposed to be impossible in this game.

By this I mean Player A has Bad/Nurse and activates Gift Card, Player B has Prime Material. This should resolve as Bad/Nurse Burning, Prime causing a gain and then Bad/Nurse kicking back in, causing Prime to act again. So the whole thing should create a loop so in this case I think it should be an effect similar to DNA Surgery rather than Pole Position due to the idea that a ruling similar to Pole Position would completely kill and anti-heal deck.

The DNA Surgery ruling I refer to is if Player A has DNA Surgery and declared "Machine" and then Player B activates a 2nd copy declaring "Insect" then Player B's DNA Surgery becomes the dominant copy on the field. So in essence, and for the sake of logic, shouldn't it be if Player A controls Prime Material and Player B activates Bad/Nurse then Prime Material should remain meaningless and vice-versa.

Just for the sake of argument I ask you fine people one other question, which I believe breaks Konami's ruling here. What happens if Player A controls Prime Material and Player B controls a copy of Nurse Reficule and a Bad Reaction?