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Yes, it will be reset, but this can be fixed using a loop or a trigger, and the function works normally with the player's hero as well.
This function allows you to specify which scenario will be executed when fighting this hero. The script only works if the hero is under the control of the AI players, and no other scenarios are set in the location where the battle takes place (town, garrison, etc.). The scenario is automatically reset when the player loses this hero in some way.