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Interesting topic.
My opinion: even if Forge fit into the Might and Magic universe, it wouldn't fit specifically into the third installment of Heroes. That is, it might fit, but for many of those who grew up on the first and second games, it would look like a big blank spot.
Why?
No matter what the developers' intentions were, the first two Heroes games are, in essence, simply a fairy tale, with their own atmosphere. A charming classic fairy tale based on classic canons, with dwarves, goblins, wizards, elves, and dragons... Its foundation is foreign myths (Celtic, Scandinavian, and other mythologies). It would be silly to deny this by calling this world some kind of universe invented specifically by the series developers. But even if that's the case (someone will still insist that the world is unique), then outwardly it is nothing more than a collective image of a classic bookish fairy tale world.
The third game, as it seems to me, has slightly deviated in style from the classics and experienced the influence of avant-garde, which was bound to appear sooner or later (in reality, you can't keep doing the same thing throughout the series). This is visible in many details, even in the design of some creatures - more realism, more "grayness," less fairy tale. But overall, it's still the same fairy tale, only more mature, and therefore scarier. Infernal creatures (horror!) and angels (horror!) have appeared. Even from the introduction of these creatures, one can say that the fairy tale world has become closer to the human world - even some kind of religious symbols have appeared, a feeling of "sacred battles"...
But outwardly, again, it's still a fairy tale.
In fairy tales, you can find battles between dwarves and orcs, the neighing of a unicorn, and the spells of senile old wizards, but I doubt you can find a tank-naga shooting a cannon at a crowd of goblins, or anything else in that form.
Heroes is perceived by many as a fairy tale woven from ancient folklore. And in it, there is no mention of tanks or jagernauts. That's already, excuse me, our time.