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Since this is a video game and this kind of sounds like abuse of a programming oversight, I would say Not the Intended Use. That is, dying or being KO'ed is normally a bad thing, so it's not intended for it to be beneficial.
I would say that's the case... except unless I'm mistaken, I'm pretty sure that method is actually the only way to win certain of the quests that I described. Without using it, it's simply not possible to build up enough strength to defeat the enemies.
Although, come to think of it, this particular mechanic of medals which raise strength in this way didn't originally exist in the game, so it's possible that the programmers realized only later that it worked this way and rather than removing that particular exploit, instead began designing quests which can only be completed by relying on it.
Edited by JMQwilleranAnd that led me to Death Is the Only Option, which has at least a couple of examples under video games which seem to fit the criteria of what I'm thinking of. Okay, thanks!
Edited by JMQwilleran
Is there a trope for a video game mechanic in which your character "dying" and then being revived is actually an essential strategy for certain battles? For example, Kingdom Hearts χ has a mechanic where using certain medals allows you to build your character's strength and higher amounts of strength are essential for being certain bosses, especially on the later stages of Proud Mode. However, with the exception of certain rare medals, all of the strength you have built up goes away at the end of your turn and then after the enemy's turn, you're right back where you started. However, if the enemy kills you and you get revived, then you start back at the beginning of your turn with all of the strength you had already built up. And because the game allows two revivals, you can just keep building up strength until you've got enough to kill the enemy.