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Question about resist pots and PvE spell damage while having the red pvp buff indicator

Many PvP battles happen in dungeons across many rooms pulling all sorts of mobs. My question is do the resist pots still reduce magic damage from PvE sources while flagged as being in PvP? Or does the flag itself negate the resist buff altogether?
flag negates all pvm buffs and they revert to reduced pvp perks or no perk in general.

ideas.. would be "victims" retain pvm buffs so they are a tougher challenge in dungeons.

However I like better to see all skills have some type of pvp role so your not a lame duck (like firehorns for bards or old peacemaking on pets or people from osi or new bard masteries that are both pvp/pvm )... and blue spawns that aggro pks like bronze dragons or blue wisps or revengful spirits
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