I just installed 1.2 and opened the same shortcut I used to play 1.1 with BI.
Some things seem to be working, other things don't seem to be working. I have the option (but as always no general capable) of attempting a night battle, and I have no banners. The AI is also most likely BI AI. All the 1.2 changes are also implemented.
However non of my units have the ability to swim. I'm also not sure about the shield wall, and what is hoarding? I've never heard of this aspect of BI.
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