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Well, let's try to summarize. Fear: living creatures don't respond to the attack and retreat slightly. This results in an unreturned strike during the attack. However, retreating doesn't skip a turn, and the enemy also attacks, and after receiving a counterattack, retreats again. The attack and counterattack happen simultaneously, and the Scarecrow may take damage from the enemy's strike (I haven't tested this).
The "First Strike" ability allows you to strike the enemy first, regardless of whether they are attacking or defending. Therefore, it's natural to cast "First Strike" on the first turn. This should also prevent taking damage during the enemy's attack. The enemy doesn't necessarily need to retreat due to fear – after all, it's not a ranged attack that can be blocked. In this situation, morale only affects the turn order (which doesn't matter for a 1-on-1 fight with "First Strike") and the attack power (which also doesn't matter for fear). Morale doesn't skip turns. Therefore, neither zeal nor sadness is useful (zeal is still helpful – we'll deal more damage and finish the fight faster).
However, confusion or any similar spell would be very helpful (even without "First Strike"), but where can you find a hero who will feed two generals? Because if the Scarecrow casts a spell, he can't attack.
If the enemy has 2 or more attack slots, fear won't work on the 2nd and subsequent attack slots. And then the Scarecrow has no chance of surviving.
Summary: The Scarecrow with "First Strike" can win against a regular melee unit, even on auto-battle. Nevertheless, he doesn't win. What's the problem?
"The computer doesn't summon ice creatures against devils in this kind of fight."
The computer is clearly not thinking clearly. Often, it summons ice creatures, but here it seems to think it can defeat the enemy with a single blow and doesn't bother.
Техника в руках индейца мертва.
Справочник по НоММ-4 http://handbookhmm.ru/pamyatka-dlya-heroes-iv.html
Памятка по НоММ-3 http://handbookhmm.ru/pamyatka-dlya-homm-iii.html
и HotA http://handbookhmm.ru/vyishla-obnovlennaya-pamyatka-dlya-homm-iii-hota.html
Справочник по НоММ-4 http://handbookhmm.ru/pamyatka-dlya-heroes-iv.html
Памятка по НоММ-3 http://handbookhmm.ru/pamyatka-dlya-homm-iii.html
и HotA http://handbookhmm.ru/vyishla-obnovlennaya-pamyatka-dlya-homm-iii-hota.html