I have installed the Jan. 12 version of DFFS. Attached is the screen shot with your code in F12 developer tools. Here are the scenarios:
1. If I put a name in the field and resolve it, I get the error and am not able to move forward.
2. If I put a name in the field and don’t resolve it, I don’t get the error and the form saves as expected.
The required feature is only available on DFFS, not on the list.
This list does not use content types, but I have 2 other lists that do use content types and work the same way.