This quest was rated medium. The first thing the dark sorcerer does is cast despair. He is level 20. Therefore he causes 80 damage to all units straight off the bat.
The other bug is evident in this screen shot of the quest:
I just faced one today, bloody hell! It is nearly impossible to kill in manual battle. However, just auto resolving it will let you kill it with ease. :/
I ran into that quest as well. Wiped out my entire force. He is alone, but man was he tough.
The medium rating fooled me to. I got my sov and another hero wiped on turn one. I had to wait until I could absorb more than 80 damage before I tried again. And you better be able to get to him and kill him before two turns are up because he will likely cast despair again. When ti first happened I also noticed the lvl 20 on the summary screen and thought "How is that a medium fight?". I think (best guess) its really because those ratings don't take into account any magic related power.
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