ARM is correct. Under my model, winning a game never lowers your rating. For example, if Minnesota defeated Lindenwood, neither rating would change. The probability that UM defeats LU is 99.99997% (to keep things simple, assume a tie is not a possible outcome). Under those conditions, since that result is almost guaranteed under the model, the ratings would only increase (or decrease, in the case of LU) .0001 or less, which for practical purposes is no change.
If the teams UM beats lose, then UM ratings will decrease because those previous wins are now less impressive. Since my model does not take into account when the game is played, every time I generate ratings the model essential assumes all the games were played simultaneously. For example, the wins over St. Cloud State has become less impressive as SCS rating decreases (from Oct 19 onward), therefore the UM rating will not be as high as it was prior to Oct. 19.
Now, UM has not lost or tied a game. Under some models, that would result in UM having an infinite rating, since that is the way (mathematically) to guarantee a victory against every other team. This tends to break the model (computers have trouble with infinity), so I constrain the rating by using a prior distribution. The prior is based on last years rating, which for UM was 1.88. That means that if UM played and defeated only top 10 teams every game, the maximum rating would be about 3.88 (this assumes a standard deviation of 1, and 3.88 is two standard deviations away). As you can see, they are not near that value, since they have played a wide range of opponents in terms of quality. That means 2.95 is a high as the model needs to push UM's rating up to balance the likelihood of not losing the games against the opponents they have played vs. the likelihood of the team improving two+ points in terms of rating.