The initiative bug is from using Slow on low initiative troops like Bone Ogre to reduce initiative too far (giving enemy unlimited turns), being negative does it, not sure about exactly 0 initiative.

Regenerating Land bug - destroying an enemy output after already razing their captured town regenerates the land that was made barren.  It doesn't happen if you raze the outpost first, and it doesn't apply to razing your own outposts - only razing a nearby enemy outpost AFTER razing a captured city (presumably of the same side).