Unfortunately no, the Online version values are too weak and there was no "Challenge" mode in the Online version so this one is entirely made up, I might think about balancing it around Offlines values in the future.
Definitely awful. Even with capped stats, everything takes aeons to go down, and them causing status effects (particularly the stun mets ON THE FIRST SET) makes it only worse
What mode are you playing on? Challenge mode is balanced around using modded weapons and characters, if you do not want to use mods then there is normal mode which shouldn't be hard to clear, I would like to clarify that this stage did not have a "Challenge" mode in the Online version in the first place so this one is entirely made up to encourage usage of mods, the first room can be a bit easier by stacking some Stun Resistance on your loadout
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I'm REALLY not a fan of the instant deaths, though.