While playtesting my Might and Magic 3 Monster Spawn mod (which I want to make sure is bug-free before I release it), I identified and fixed what I call the “Damage Resistance bug”.
Damage resistance bugfix— This bug surfaces in the late-game when characters are hitting for tons of damage, and monsters have damage resistance. A 16-bit overflow occurs when multiplying out the resistance of the creature, resulting in far reduced damage. Damage is now calculated properly.
Head on over to the MM3 Modding Resources page to pick up the patch for MM3.exe, and its companion MM3.CC, to play stock MM3 with the additional bugfixes.