(2025-09-19) A creature with a counter on it is considered modified no matter what kind of counter it is or which player put it on that creature
Theyre two different zones with different purposes and they dont overlap
Angel of Despair Angel of Suffering Atraxa, Grand Unifier Atraxa, Grand Unifier Atraxa, Praetors' Voice Cleaving Reaper Crypt Angel Deathpact Angel Desolation Angel Drana and Linvala Eradicator Valkyrie Fallen Angel Firja, Judge of Valor Hailstorm Valkyrie Ixhel, Scion of Atraxa Liesa, Forgotten Archangel Liesa, Shroud of Dusk Maelstrom Archangel Magister of Worth Renegade Reaper Rodolf Duskbringer Selenia, Dark Angel Sephiroth, One-Winged Angel Seraph of New Phyrexia Seraph of the Scales Shattered Seraph Tariel, Reckoner of Souls Vengeful Reaper Weeping Angel
Here's the layout: On the top right hand side, we're looking at the cost to play the location
That ability is "when the last defense counter is removed from this permanent, exile it, then you may cast it transformed without paying its mana cost." This means that if for any reason a battle enters the battlefield without defense counters, it will be put into the graveyard and its controller will not get the chance to exile it
A Warhammer