Okay, here's the bugs:

Bug 1: The 2 cards summoned by "Magical Hats" should have no Level. Currently in the game they are treated as Level 1. Because this bug you can use the cards for Synchro Summon if you use "Urgent Tuning".

Bug 2: Destroying the 2 cards summoned by "Magical Hats" at the end of the Battle Phase should be a condition. You cannot save your 2 cards by using a card to prevent being destroyed by card effects. Currently in the game if you protect the cards from being destroyed they will be remain on the field.
Because this bug, if you equip 1 field spell card to a monster for example "Inzektor Exa-Stag" the card will be treated as a Field Spell Card and a Equip spell card at the same time. Also the card will be equipped in Field Spell Zone instead S/T Zone.

Start the replay at turn 7.

Bug 1: I agree with they should not be level 1. This is a bug as Magical Hats does not give them levels.

Bug 2: The destruction can be avoided with cards such as you used. If you can prevent them from being destroyed by card effects they will not be destroyed by Magical Hats.

Bug 3:The field spell thing I am not sure about as it is a very specific instance. I would assume it should go into your normal spell/trap zone and not gain any of its normal effects. I am looking into this though as it is rather specific but my gut tells me what is happening at the moment is a bug.

---