On page 7 of the rule book under recovering characters
It says when you recover a stunned character flip it
Face up but leave it exhausted.
Yet the rules under recovery phase it says "during this
Phase if you have any stunned characters they all recover
Then ready all of your characters."
My question is, do characters ready or stay exhausted after the recovery phase?
They all ready. Most characters only have a single life point so most are going straight to the KO pile, but those with more than a single life point remain stunned until the recovery phase where all of the characters will recover and then ready.