Dracula returns to castle Dracula with 9 blood, gains 2 blood on his turn bringing him up to 11. He has one victory point, and the hunters have one resolve.
The hunters on their turn use 1 point of resolve to move to Klausenburg to apply heavenly host. A second hunter then plays Consecrate ground on Galatz.
Did Dracula just lose the game?
it seems like he'll now just be considered cheating every turn until he dies. Sure he can maybe hide, feed, and dark call to delay it a bit, but the hunters can just wait him out, right?
This situation is impossible. The Heavenly Host card states that it can't be used on Galatz, Klausenberg or Castle Dracula.
The FAQ gives Errata stating the same for Consecrated Ground.