You know the Echo buff in dungeons? When we 'wipe', the failure in-lore is considered a possible vision of the future. This gives us insight, which manifests gameplay-wise as increased stats and power.
Citation please. I've heard a lot of people say something along these lines (echo sends you back in time to try the fight again, etc) but I've never seen anyone official who has said that wiping/trying again is anything but a game mechanic.