Rules FAQ
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The effect lasts until you reveal a new plot card, so it will expire if you reveal a new plot card during the challenges phase with "The Rains of Castamere" or Battle of the Trident.
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The word "cannot" is absolute and therefore prevails over any ability that would allow you to initiate an additional challenge.
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In a Melee game, you and the chosen opponent can both still initiate challenges and have challenges initiated against you, you just cannot initiate them against each other. However, you can still end up in a challenge against each other if a challenge is redirected using the Crown Regent melee title.