Grigoriy
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Thank you for the tip about the greaves. I reached the demon general, and his army is just too huge. I decided to replay, this time with dark magic.
And I have the same problem as Player100. But the first time, everything worked.
I think there's a connection with the order of actions. The first time, I killed one demon near the castle, and the second one inside the castle. This time, I first killed the castle demon, and the second one was swimming in the sea. I could only reach him after a few turns.
Yeah, I guess I should have banned building a shipyard in that city, but I only found out about this problem nine years after creating the map. Although it's strange, it shouldn't affect the script like that. It seems to take into account whether the hero is actually in the castle, as if he managed to visit the city before the script triggers to destroy it.