UPD I tested the theory about capturing the Dungeon on version 1.2.4. It's possible, but it's a huge hassle and the losses are too great. The only plus is the ability to take the lumber mill on version 1.2.5 and have time to build a market or tavern in the Dungeon by version 1.2.6. So, you can probably get some minimal benefit from this.
UPD I tested the theory about capturing the Dungeon on version 1.2.4. It's possible, but it's a huge hassle and the losses are too great. The only plus is the ability to take the lumber mill on version 1.2.5 and have time to build a market or tavern in the Dungeon by version 1.2.6. So, you can probably get some minimal benefit from this.