Normal difficulty, fortunately I have a correction, all of this happened on the Draconia map (which has 3 players by default) When I tried the something something Arena map with 4 players it worked differently, when I engaged an opponent none of the other AI were involved in the battle. I was curious to see if it would translate to 2 v 2 rather than 2 v 1.
Oh and it's great to hear you're still expanding the game Lar_q, in particular I'm excited about the custom rules making it over. I was sad to have to choose between them and the narrative. Improved campaign AI is also very exciting.