Does Deflect work with Forbidding Waste Battlefield?

No, Deflect does not interact with the ability of the Forbidding Waste battlefield.

Why Deflect does not apply:

  1. Deflect's Targeting Requirement: According to Rule 809.1.c, the Deflect keyword specifically applies to spells and abilities an opponent controls that "choose" the unit with Deflect.
  2. Forbidding Waste's Ability: The ability of Forbidding Waste imposes a -2 Might penalty on a unit that is defending alone.
  3. Nature of the Ability: This is a continuous static effect generated by the battlefield. It does not "choose" or "target" the units affected by it; it simply imposes a penalty on any unit that meets the condition of defending alone.

Summary

Because the Forbidding Waste ability does not select or choose a target—functioning instead as a global condition that applies automatically to any unit in that state—it does not satisfy the requirements to trigger the Deflect keyword.

Note: I could not fully verify this ruling against the retrieved rules.