Well, you can still pass it. Before passing the scene, you need to use all the highlighted objects to defeat the enemies and you get the artifact.
As I said in my post. If i get hit I cant interact with any objects, trying to hit those bags into enemies is very fiddly and very hit and miss. It needs a patch.
I just beat them all and the guy with 2 hp had 1 hp. I hit him and he went back to 2 hp. Then I hit him again and i died. Very bugged. I used every object
So I beat the guys eventually. The way I did it was use the tire straight away, then line up the bags to hit one guy, then walk round the other tire without being hit (can be tricky) use that and you should be on either 2 guys or one guy left. Then use the bags to finish them off, again dont get hit. If i just hit them that's when it would bug and they wouldn't die/ heal themselves.