vasik
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You need to escape, not surrender, for the hero to appear in the tavern. If he surrenders or doesn't manage to escape, it's like losing a hero. I don't know why it's designed this way, but it ends up being a bit more expensive because you have to buy the units again. Otherwise, you need artifacts that boost initiative and keep harassing him until he attacks the castle, because he's a very dangerous enemy with teleportation.