Heroes III in high resolution!

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How can it not stretch? It will stretch.
Do you know what resolution is? If you stretch from 800x600 to 1024x768, what will happen? On a CRT monitor, there will be more pixels, and on an LCD, several pixels will have to act as one, and the image will blur.
I may not have expressed myself correctly, but it will not be possible to improve the picture in any way.
It's not very enjoyable to look at pixels the size of peas.

No, it won't stretch; the game itself switches the monitor to 16-bit mode (if, of course, it's in full-screen mode) and 800x600.

Regarding the program - it is undoubtedly useful, but I set mine to 16 bits, and I don't notice any difference.

There is a very big difference; for example, I find it very inconvenient if the color depth on my desktop is 16 bits instead of 32 bits.
Here is the archive; there are 2 shortcuts. Switch from 32 to 16, and you will see the difference.

Одна древняя легенда гласит,
Что темный дракон весь мир покорит,
Темный дракон - безликая тень,
Теперь навсегда ночь сменит день.
Он свергнет всех местных Богов,
Ни сила, ни воля не сдержат его.
Рыцарь, король - все одно для него,
С ним в битве исчезнет и зло, и добро.

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Heroes III in high resolution!