Can't say this would have happened with previous versions as 1.08 allowed me to get further than the rest and is closer to the type of game I thought I purchased.
Anyway, same thing happened to me. Magnar declares war on me so I land my channeler's stack of 8 on his shores, take one of his wimpy cities and proceed to lay waste to every army he sends in to reclaim it. After this repeats about a couple dozen times, my repeat victories are rewarded by me losing all my units except the sovereign and a summoned ice lord. WTF?!? I didn't even have the maximum stack of 12.
I threw my hands up in disgust and will wait if 1.09 clears up this mess. I don't crash or slow down but these things just ruin the gameplay. In case technical support is reading there also remains lots of cosmetic distractions that rob the atmosphere including missing text in descriptions, all screen text missing after saving and doing a "return to game" (need to zoom in/out for text to reappear), and even a message asking me to update to 1.08 when I was already running it. And I agree with another poster that the zooming in and out of the cloth map, while nice, is just so jumpy that it's hardly worth it--better to just have 3 or 4 zoom views toggled if it can't be done smoothly.