What happens to engaged monsters during the refresh step?

In the video it looks like the engaged monsters stay engaged if they are not killed? Is that correct... so if a monster attacks or defends an attack with a hero / ally... that character is effectively tapped until the next combat step either kills it or kills the monster.. is that correct? Or dose it simple refresh and the entire turn goes as the one before it?
 

 The monsters stay engaged, but everything refreshes at the end of the round. That means the monster is still attacking that player, not that specific character.

ok... so the monster is still attacking, so it is like a automatic win on the monster attack phase for the monster... and then combat continues as before.. is that correct?

Also when assessing threat levels, is the attacking monster still counted? Even though it is not in the "staging area" but in the face of the player attacking them?

 No. You get to assign a defender if you want every round against that monster. So lets say you've refreshed, done your planning, committed, and done encounters.

When it comes time for him to attack you, you may choose to defend it like always. Then have another character attack him. If you have ready characters.

And I believe threat is still counted, that's how we've been playing here and it feels right.

Threat is not counted once the monster is engaged. Only monsters still in the staging area add their threat to the quest phase. 

 Thanks spirit. That makes the game a lil easier. No wonder I've been getting brutalized.