It seems that our Zoo extension currently doesn't support the submission feature. Thank you for all the information, we'll update our extension as soon as we can.
In the meantime you can configure Zoo extension to not create SEF URLs for submission links:
Open JoomSEF -> Manage Extensions -> Zoo -> Common tab and set "Don't SEF URLs matching regular expression" option to "submission" (without the quotes) and delete the already created SEF URLs with the word submission.