"Devolution" is definition in biology. It's not a concept. It means the losing of previously evolved structures. As a definition it can't be incorrect, it can only be shown to exist or not it exist. It happens frequently, as a matter of fact. Again, the 2nd law doesn't apply in any way that it doesn't already apply to any other aspect of life.
To me, evolution is a physical process, but I think you have a different perspective.
I don't know what this means. Of course it's physical. Organisms are made, destroyed; they eat, make new organisms along the way. There's an underlying molecular biology to it all, but all the processes at every level are physical.