I’ll elaborate. For starters, this is all done and in reference to Custom Dungeon selection, not Challenges (EDIT: just verified that this is the way it is working in Custom Skirmish selection as well). Unless something has changed, other than Chapter 15, there is a Level difference between Normal (progressively increasing level over each chapter) vs. Hard (constant 50+ regardless of Chapter/Dungeon chosen).
For instance, here are my options for Ruins of Lunarion (Dungeon 13):
So, Normal is Level 41 with an Enemy Score of 1,683 and Hard is Level 50 with an Enemy Score of 2,210. However, when you launch a Hard Battle this is the first enemy you encounter:
Notice the enemy level?
Once the “Hard” Dungeon is complete, what rewards do I get? It’s possible that I’m getting less Gold and XP than I should but it’s clear that I’m not getting a Level 50 (“Hard”) Chest:
Here’s an example of Dungeon 1 “Hard” mode:
Should be consistent Enemy Scores for all Hard Modes (except Chapter 15 it seems) and should be consistent enemy levels.
And here’s my Chest reward:
Dungeon 1 “Normal” mode is not Level 35; it’s the lowest dungeon level range (Level 5 I believe).
For referencing purposes, this is the “Hard” mode first enemy from Dungeon 15, Portal of Blood:
Here is the chest received:
I don’t know how to be more clear. If you are not seeing this in 0.37 version which I don’t have the benefit of, perhaps it’s already been addressed.
EDIT: I confirmed that the “Hard” modes at the lower levels as depicted above also give XP and gold equivalent to the “Normal” levels the dungeon is spawning at.