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About the hero in the dungeon. You could create a "legend" that this is an old governor captured by the enemy, and only he knows the way to the city of Angels, or to the dungeon leading to the city (what was it called - Tyrannium?). In the second case, you can only get underground by freeing the hero. But then he shouldn't be captured by the computer.
And what are the differences in the hard difficulty compared to the normal version?
Yes, and in the normal version, in the third scenario, something is wrong with the tents where they give quests. In one, they ask you to bring clover, but the picture shows a dwarven king's axe; in the second, it's not clear what they're asking for and what they'll give.