You've overreached here :) It turns out that with every retaliation, the number of units in the stack decreases by 30%... But that's not how it works... After all, damage dealt BY a unit and damage dealt TO a unit are not the same thing...
I haven't analyzed this situation yet... although, there is Excel. One moment.
Oops...
The total health of all (non-neutral) creatures is 7675, the sum of all average damages is 1625. Therefore, the average damage relative to average health is 0.21.
But after the upgrade, this coefficient increases slightly.
Then we take 23%
Consequently, the second hit will be (0.8-0.9) of the first.