jjoker
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I completed it on "Hero" difficulty quite easily. The AI in all cases acts foolishly, retreating at the start of the battle. Although the danger to my hero is moderate. Kurak (with an "impossible to win" danger level) retreated in the middle of the battle. Which is also unclear – why, he had at least a 50% chance of winning. I used the classic strategy – Subjugation Berserk, plus I acquired a set of dwarven armor. I didn't bother with the third castle. I didn't encounter the Elf or Necromancer (mentioned above in the comments). Through diplomacy, I recruited about 200 centaurs. So, the price of one centaur on the slave market is about 14,000. Is this a bug or a design feature? In general, the main drawback is that the AI always retreats in every battle.