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Yes, in any version of Heroes, you can buy back defeated heroes, and this isn't considered a bug, at least because if the developers thought it was a bug, they would have fixed it long ago. I can also agree that it should be prohibited in online play because one player might be ahead of another and might have better luck with buying back heroes than the other, but in offline mode, EVERYONE is in the same conditions; everyone has a shovel – dig up heroes. Can't dig them up? Then there aren't any; hunt them, kill them, and dig them up afterward. Or you can ignore them and just pass through quickly. I think that prohibiting buying back defeated heroes in offline mode would be unnecessary.
Anyway, I agree. After all, the hero isn't killed; their army is defeated. The developers did this intentionally, meaning it's not a bug at all.
It's a different matter that when creating tournaments, rules are also created. And I believe that defeated (killed) heroes should not be used again!!!