Hi Bumblebee.
Your first post was crstal clear, but since you have taken the time to elaborate, i'll add a bit more. When you choose to do no damage you accept that you may not get any loot, possible explanations are
1) you get looted
2) your mount chews it up
3) ur mount loses
4) disruption to your connection - which is what you are trying to put forward. This disruption could be the result of a number of things going on from the point the singal leaves ur PC to the point it reaches the server. I hope someone better informed can elaborted on the technicals of this as it is not my strong point.
Sorry to state the obviouse but if losing 1 fight pains you this much then maybe you would like to try out what many others are doing, do so damage.