Well N3mes1s, sorry for that but that's how this game goes now. KBAP doesn't like squandering cash
Looking at you army setup it doesn't have a distinguishable tank, nor a unit to support it. You also don't have scapegoat units save for the sky guards from the Royal Griffins.
The next playthrough, try making a balanced party with a strong tank and good support. Paladins will do, and they're best paired up with Archmagi for magic shield to reduce the damage they take. Even if you don't have target (I found it late in most of my playthroughs), you can always port the paladins right into the centre of the battlefield or into the enemy ranks and do the tanking that way.