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I didn't capture the city, which has garrisons near the entrance to the dungeon. Maybe it shouldn't have been captured, at least not before capturing the others.
Try starting the mission again through the campaign menu and start from the southwestern city, as Alan suggests. If you manage to quickly curse the city, it will be much easier. The mages become less effective after that. If you're lucky, you can buy the most powerful high-level mage in the tavern.
What version of the game are you playing? I completed this mission as a Warrior in version 1.41 and as a Hero in version 1.5. There were no glitches.