With "Environmental Damage Restoration" set to "limited resting", resting or healing are the only way to remove the permanent debuff to max health. Meds, aid items, or even visiting a doctor have no effect even after the affliction is removed.
Environmental damage is generally inflicted along with the related affliction; i.e. burns or frostbite. This limits your maximum health until healed. It used to be healed when you were in a safe space and there is a difficulty setting for that. It seems an unintended (?) consequence of setting "Environmental Damage Restoration" to "limited resting" is to make resting or waiting for a sufficient amount of time the only way to heal environmental damage even after the affliction is removed. Visiting a doctor or using aid items won't work even after the affliction is removed.
It's simple to resolve by resting for long enough in your outpost or ship but at least to me it seemed that a physician should be able to remove environmental damage even with the restoration setting.
1.11.36
English (EN)
Yes, I can recreate this issue.