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Honestly, this is possibly inconclusive. Daemon can never bypass Encounter, and Gagamaru will avoid reflecting damage back onto Daemon directly because of his character. So they sit there forever basically. Although at any time Gagamaru can redirect damage onto Daemon and kill him, so I suppose it's just a matter of if he gets fed up enough to do that. So I'll vote for Gagamaru since he can choose to break the stalemate at any time.
I would argue that one person having the ability to break the stalemate would push things in their favor. He isn't limited by a lack of capability but a lack of willingness. If he ever becomes willing at some point during their eternal staring contest then he should win. And he did kill Kumagawa, so it's not like he will always make his power avoid the other person. If he's pushed enough then he'll be willing to remove that restriction from himself.
I would argue that one person having the ability to break the stalemate would push things in their favor. He isn't limited by a lack of capability but a lack of willingness. If he ever becomes willing at some point during their eternal staring contest then he should win. And he did kill Kumagawa, so it's not like he will always make his power avoid the other person. If he's pushed enough then he'll be willing to remove that restriction from himself.