Difficulty has no effect on anything else than starting money, item availability, prices and if leaving mercs take their equipment with them.
"I am a Paladin!"
>OMG, Malthus, there are no damn paladins in Battle Brothers...<
"OK, OK! Then I´m a wrecked down minstrel drunkard pretending to be a paladin, singing so wrong in the midst of battle that even the undead run in fear... Better?!"