Imrik Campaign, Legendary Difficulty
After confederating Caledor I was defending Vaul's Anvil and waging guerrilla warfare against Cult of Pleasure that had conquered half of Ulthuan. I was doing okay-ish until my ambush was foiled. I decided to retreat, thinking I could have better terms or they could not reach me.
Alas, the game gave "Killed in Battle" notification right after the "Army Retreats" one. No damage was done to the assaulting army, I didn't get another combat screen or notification, and the Noble accompanying the army simply ceased to exist.
The game seems to think however that I did in fact accept a fight and lose it since the autosave throws me right back to the "Killed in Battle" notification on the turn cycle.
Now, this doesn't straight up end the campaign, but it's likely I'll loose Vaul's Anvil and my only footing in Ulthuan, making the rest a slog, essentially. Pretty astonished and dissappointed.