I played on normal difficulty, I just didn't expect the mission to end so quickly; it seemed longer in previous campaigns.
I was also surprised on my first playthrough. The second time, I tried to collect all the chests with Irina, took a 25% experience bonus, and it still wasn't enough. I waited a few weeks, killing Carlof, who kept running out of the city, without conquering the city itself, and then I gave up. I took the city and, on the next level, immediately got an upgrade.