Difficulty setting during events - does Zwift take control of this?

Yesterday, during the TDZ3 Mountain Route to the radio tower and back down, my trainer (Tacx Neo 2T) seemed to be in a very odd or low “difficulty setting” even though I had it set to MAX in SETTINGS. I ended up having to do the final climb up to the radio tower in my biggest gear!?!? Was barely moving though (as usual still in the 8~10km/hr range), and still putting out my typical power for that section ~300W. It was almost like I was in some sort of ERG mode (I did check in my companion app to see if I was in ERG mode, but unlike during a “workout” I could not see any mention of “ERG on”)?

So, my question, does ZWIFT automatically impose some sort of lower difficulty on TDZ climbs?

Still more testing to do on my side.
Worth noting, I did join ~1min after the start (~200m behind others).
The Neo has never behaved like this.
My previous ride a day earlier was a custom workout in Erg mode and it worked fine.
I did another recent event (100km 4xRGV), but it was fairly flat, and I don’t recall experiencing anything like this even on the little RGV climb up the bridge.

Tacx Neo 2T: 79kg rider. FTP ~250. My gearing is fairly typical IMO, but based on some old 2004 9-speed Ultegra (Its like a 50x34or36 with an 11-25 or maybe its an 11-28 - nothing weird or custom). There is nothing slipping or jumping on the drivetrain itself -its all been replaced recently and works fine. For the final climb to the tower, I’d normally be in my lowest gear, or 2nd lowest, grinding/standing ~300W and maybe 8~12km/hr and I think recently, I even started moving the difficulty slider down to ~75% before doing this hilly route -I figured this lower setting would give me slightly more generous gearing than my lowest physical gear could offer??? In any case, yesterday during TDZ difficulty was pinned on MAX or maybe one notch below MAX after I went in during the ride to check on it, and thought, maybe by toggling it down slightly, it might force it to reset itself and behave properly??? nope. no noticeable change. oh yeah, using an Apple TV 4k box & app, and the Neo is Bluetooth to that box.

NOTE: Regarding the numbers I’m quoting for speeds, gear tooth counts, and power #s, I’m just going from memory and trying to show that my setup is nothing unusual - IMO. This post isn’t intended to encourage anyone to look into calculations or what cassettes were available in 2004. 50x11 to the radio tower…come on, something is very wrong IMO.

Appreciate any insights!

That sounds odd. Zwift Events don’t do anything different about the difficulty, and just use whatever Trainer Difficulty is in your settings.