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Good time of day. Question.
What needs to be upgraded to be able to control the counterattack? i.e., so that I can decide whether to retreat or counterattack?
What do you mean by "counterattack"? A counterattack is an automatic retaliatory strike by an enemy unit when attacked... It cannot be controlled; it always happens unless your unit has a special ability – a counterattack-free strike (vampires, for example). If we are talking about "retreating," then this is a decision made by your hero during the battle – at any moment during their turn; nothing needs to be upgraded for this... And then it all depends on luck.