OK... tried DEV mode, still doesn't work, it just crashes me to the desktop. So, I did what I never do otherwise - I cheated and used "K" to kill all of Eric's troops. Game works fine from now on, at least for the time being.
Another bug, or maybe a "feature" - on Nordlig Isle, the northeast corner of the mainland, you see a house marked "House of Jotun" on the map, but there is nothing you can visit there in reality, only a bridge and a stat-boosting one-visit place.
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