Ive lost, but defeated all enemy villages

[knight1]

Its horrible! I just have defeated all my enemys by destroying their castles. Its TPR lvl 4.

When I won it says 'youve lost'.

Is that a funny feature of the game?

[Lewin]

Read the mission breifing more closely, I think you'll find it says you should not hurt the innocent villagers, but only destroy their military buildings

It was the same in the original game.