VDV_forever
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It seemed to me that there were no permanent events in the first Heroes at all. In the second game, you can completely replay a battle if you don't disrupt anything.
I tried to solve this task unsuccessfully, and now I solve off-tournament battles almost every day.
I can't understand how you can get negative luck at all? Morale is understandable, there's Fizbin, and a different army, and attacking a looted graveyard.
Regarding the repeatability of battles in the first game, this is a very complex issue, and here our opinions with the respected AlexSPl differ somewhat. Currently, this section is being discussed and clarified; you will soon see it in the reference guide.;)
And it's better to replace the genies with paladins, it will be less tedious to kill them:)
Apparently, luck was changed by software, and there are simply no other ways to lower luck.;)
Sincerely, VDV_forever