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The level limit is 32767; I saw it myself. After that, it goes into negative values because the most significant bit of the 16-bit value is interpreted as a sign. That is, numbers from 32768 to 65535 are considered negative. The same thing happens with experience, only there the value is 32-bit.
Regarding that battle with the dragons, in my case, knowledge was around 90, meaning total mana was about 1800. There was no intelligence because the skills were set rigidly by the mapmaker (there was no possibility to take another hero, as there are no taverns in the cities, and I couldn't reach the only tavern on the map; the passage guard required all skills to be 90, and I was just a little short, although I had overcome all the obstacles). However, people write that they were able to go to the tavern... If we consider the damage to be 13325 and the casting cost to be 23, then theoretically, the total damage is 1800/23 * 13325, which is enough for 1042 Azure Dragons, which is not enough.