Hmm, it's not good that we still have these sorts of wild bugs and release is only around the corner.

I just realized it's quite a bit worse than I initially thought.

You don't have to play through at all.  All you have to do is make and save a naked unit for each faction, quit, make the next faction with the same name.  Rinse and repeat.

By the end of the process you should be able to make units from any faction at the start of a new game (with your original faction name).  

I haven't exploited it like this today but I'm quite sure this is how it works at this point. 

The game should delete the old faction file before saving the new one instead of updating it.

Also Gandalf, what's with the Primary Color and Secondary Color? I can't find any references and I have no clue what they affect - they have no effect on clothing, nor on faction borders / buildings colors as far as I can tell.

I understand why it occured.  Its because they are trying to save your favorite units for use again when you play again

What really needs to happen is factions under the hood with the same name need to be referenced with unique identifiers.  Such that you can actually create two factions with the same name and no overlap every occurs.

Or when creating/modifying your faction the original file contents need to be deleted.  This would probably be the simpler solution. 

Its easier than that.  You can simply change the XML to allow all of these things (and much more).

We can certainly fix it.  But even if we do so it doesn't keep players from going and doing this (if they want) with XML changes.  Or creating unbalanced maps with the map editors, killer spells etc.

I know there is a difference between doing it in game and out of game, but keep in mind this is a single player game.  Its not like World of Warcraft or Starcraft where player exploits effect anyone but you.  If you want to have all the units in the game, you can do that.