Yes I've beat the last tower, and it does not burn down.
Could be a bug because I haven't got the "Complete 4th bracket" unlock yet. Still unchecked.
Also I have level 7 Kenshi, silver card.
How? I purchased him first time, then I bought 3 card packs (30K) and he was in there twice!
Final time I purchased the 192,000 pack of coins and bought him twice (75K coins).
His stats are insane and he can't be beat by any of the AI, even the last tower.
I can literally take on the whole team without losing more than half life.
His stats: 12K damage, 16K health (and all specials maxed out completely, along with some equipment).
My next character I want to max out is either Ninjistu Scorpion, Grandmaster Sub-Zero or Inferno Scorp just because they're already over level 20.
As far as tips to beating Reptile in the Kitana challenge, just block as soon as he does his damage boost and wait for him to finish his combo and punish.
You definitely want your other 2 characters to be at least around level 15+ with their stats maxed or damn near max to do any big damage on him.
Basically just study his movements and counter heavy with combos and special attacks that either stun him or drain power.