Below is a summary of known facts. This info is based on this topic.

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GOG's King's Bounty: The Legend is version 1.7(35396) while original and official retail version (source*) and versions from other digital distributors (Steam - source, and GamersGate - source) are numbered 1.7(35234). GOG's build number is suggesting that GOG has the newer version. I do not know what are the advantages but it has never found before some additional bugs.

*) EDIT (2020-06-29): The original link with source is now broken so here is the webarchived link (the GOG forum has some problems with direct link to the webarchived page so I used tinyurl service to convert it).

So far I have discovered two buggy things in GOG.com version: it has bugged garrison/reserve option/skill and does not display properly damage numbers during battle - both bugs are confirmed by others GOG's users and support.

1) bugged garrison/reserve
To encounter this bug:
a) start the game and skip tutorial.
b) at start you have army of three troops (3/5) - buy two additional troops of types you do not have in army to fill up empty slots (to have 5/5).
c) free one of the slots by putting one troop in castle's garrison (to have 4/5) and buy another troop of another different army to have again all five slots filled (5/5)
d) NOW click on unit which was put in garrison and it disappears - in any other (not from GOG) version you will have info: "no space"

There is no fix so far: I managed to discover that this disappeared troop was put and hidden in (at start) locked reserve slot! You can do the same with second unit (as you have two reserve slots in game). Third try with third unit will get you "no space" info" at last. So - even if you have not reserve unlocked you can put something into there - the problem is how to get them out? Anyway it is clearly a serious bug and the only solution so far seems to be: avoid clicking on your troop in garrison while having 5/5 army.

2) bugged display of numbers during battle
When you start a battle and your unit deals some damage to enemy unit (or vice versa) over attacked unit will appear two numbers located at the same place on screen - one number is damage the other is number of units killed. Since they are located in the same place sometimes it is hard to read them.

Temporary fix was found: Edit game.ini file and in place of "showflyingdead=2" type "showflyingdead=1". From now it will now show only damage number.

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Weird thing is: these both above bugs have some connection with next part of the game, King's Bounty: Armored Princes - you may ask "what? why?".

ad 1) In KB:AP both reserve slots are available from the start of game, you do not need to unlock them. Why GOG.com version of KB:TL "thinks" the same that you can put something in reserve at start without unlocking them first?

ad 2) KB:AP is the game when you starts with "showflyingdead=2" in game.ini. All no GOG KB:TL versions I know starts with "showflyingdead=1" in game ini.

All in all, it looks like someone has used patch for KB:AP on GOG.com's KB:TL... Weird, isn't it?

EDIT (2020-06-29): Some links were wrongly displayed so I fixed them.

As a workaround for bug #1 you can choose to delibaretaly fill those two reserve slots with 1 1 thorn and one peasant or any other two cheap or free level 1 units.

Well, yes, that could be also some solution as game will grant you access to them later to throw them out and use both slots in normal way.

Does it mean that the game is rolling back to the patch build Lexor mentioned?

UPDATE:

After applying the ZIP file, my previous saved games do not show in the load games dialog window. Even though they are still located in the "$save" folder.

So i started a new game, made a test save, and discovered that the test file is located in the same "$save" folder along with the other previous saves.

And only the new save game shows up in the load games dialog window

Could be that by changing builds, the old saved games are not compatible?

I don´t mind losing my saved games for a good cause, but it is good to know beforehand that this could happen.

By the way, i am running Win XP.

Has anyone else experienced this?

Have you tried the other patch, the one from 1C I linked here? Revert to state before zip and use this rar if you want to try.

so is the new installer there yet? wish it was easier to see if something has been updated. but hey perhaps a future feature.

It is updated now.

But I still do not know if this version is self made or delivered by developers as they promised. I think it's still first option.

No, have not tried the 1C patch yet.

After using the ZIP file provided by Firek , i noticed that the garrison bug has indeed been fixed. A dialog box pops up saying "No place in your army"

However the "showflyingdead" variable (which the default setting is 1 - displaying kill count) when changed to 2 (displaying both damage and kill count), reverts back to 1.

In other words i can set the variable to 0 (to display damage) or 1 (to display kill count) but not 2 (to display damage and kill count at the same time).

Yes, I've already tested these two things (it was easier to make backup for Firek's patch to revert it after).

And yes, these two things are corrected. BUT I have strange feeling that after this patch game only "imitates" it is 1.7(35234) and indeed it is the same game version like before with only these two things corrected. Unfortunately it is probably not possible to have two versions of game installed at the same time to compare.

Also, after Firek patch my saves do not work which is very bad for me as I invested a lot of my spare time in the current game.

How is "showflyingdead" supposed to work now? I have reinstalled the game to try it out and it shows either damage or killed units, not both. Setting "showflyingdead" to 2 shows just the casualties.