This game is pretty enjoyable and the concept + execution is pretty neat and novel. Regarding the balance of the combat being bad...well, it doesn't really matter imo. It's not what anybody is here for and makes it easier to have things just go the way you want. The strength of your game will be on the scenarios you come up with not on the stale rpgm combat.
Sad to learn that the female harem lord was a man at some point though, at least if I got that correctly from this update. I feel it cheapens the lesbian aspect and that's what I was looking forward to the most. Next we'll find out she has a dick I guess...but I sure as hell hope not.
Also, you should add messages indicating a safe save point after updates to avoid people having their saves ruined by bugs. In this one for example I was stuck in the version of the town that was blocking me from going to the castle and couldn't talk to the old man to start the second war. Trying to load my previous save in the castle gave me some failed to load a json error regarding the map so I had to fight the first harem lord again.