Why is Challenge 1-3 crashing the game?

This is from a GameFAQs thread. I had the same issue, so I'm posting it here:

I’m playing the digital version, and whenever I attack an enemy on Challenge 1-3 my game crashes. It’s happened 3 times and really discouraging me to continue with the game. Any ideas why this is the case?

Solution 1:

When I played this level the first time, after completing World 1, I didn't have any technical issues but I wasn't able to figure out how to beat the challenge and I left it uncompleted. When I came back after beating the other worlds, I experienced the behavior described above: whenever I shot an enemy, the entire game would crash.

My solution was to use a team that would have been available when I first played the level (Rabbid Peach and Rabbid Luigi) and change my team's equipment to the starting weapons. With this composition, the game acted expectedly and there were no crashes (and I beat the challenge).