MARK RESOLVED
I would like to apologize. After a bunch of frustrating testing and back and forth with local I finally discovered it was command blocks placed in 1.7 that were causing the bug on the server for myself and the other player due to a combination of scoreboard and effects conflicting. This is in fact not a bug except for my own doing.
Thanks,
Russell
I was just notified by a 2nd player on my Realms that he is experiencing the same issue. Mining Fatigue now erases all status effects when applied. Although he first received fatigue from Eldar Guardians at the same monument as I did, he never drank milk. So it leads me to believe there is no causality with milk and fatigue.
More so, 2 other players went to the monument and received fatigue and they are not having this issue. Status effects work as expected. So it's hard for me to say what correlations there are between myself and the other player that has this bug. Seems the repro conditions are probably more specific.
I did some further testing. Using /effect to give myself mining fatigue produces the same bug. So it need not be re-applied by the elder guardian specifically.
I find that this happens specifically with diamond tools as your picture shows and that it's very common (it's easy to reproduce) I've never seen the bug with any other tool type. I am on ipad3 and android 4.1 phone.
I have this problem in my world, which is pretty much unplayable now when exploring. If new chunks are generated the game runs for about 10 seconds prior to getting this crash: