I don't know about 1.6, but in 3.0, it's impossible to complete the 3rd mission of the 5th campaign without this fix. The purple units won't appear, and the quests won't update.
With this fix, the first demon will run to the first town, not the second. In my 3.0 game, the other demons ran to the town near the Utopia. I even had to surrender it. In the 6th turn, I took the far northeastern town. Railag couldn't outrun the demon, and the mercenary I bought in the tavern wasn't strong enough to defeat it. The demon behaved quite reasonably. It only captured the nearest mine and waited for Railag.
I struggled with this mission in 3.0 for a long time. I couldn't complete it on the Hero difficulty. I passed it easily on Veteran. In version 1.5, I completed it without any problems on Hero difficulty.