This is the "Clone Area" which means if you enter it your character will be cloned and your clone will attack you immediately after.
The clones spam knockdown (or improved knockdown) on you (if your character has that feat) and selects and switches weapons from his (your) inventory. There is as well a script protection making all items of the clone undroppable and removing all items and gold from it after the duel so nobody can steal your stuff :).