Unless you've already tested this (?), another possibility just occurred to me.
The problem I noticed, where the AI apparently can't 'decide' which strategy to employ with its free Settler-to-start, might actually only apply to game-start? Whereas for handbuilt Settlers, it might well be able to assign a strategy, just as it already does with dual-use Off/Def units like Rifles + Infs (in the epic-game).
So yet a third option (although also moving slightly away from a 'strict' Civ-clone) might be to keep the multi-strat Settler-units, but replace the starting-unit with a non-buildable "Civ-Founder" unit which can only Settle.
That is true, but I find turning off the animations, especially over the interturn, to be more confusing, since I can't see what's happening to my units.
And yes, I already bumped the HP back up to 2 and 3 for Conscripts-Regs and Vets-Elites, respectively!
The AI doesn't seem to use Settlers as Workers in the original file, so I have added a Worker unit - the same as a settler, but now it does the worker jobs... however... the flag somehow requires you to also select the "build colony" flag.
This is not a huge problem, because the game doesn't have strategic resources (other than unobtanium, which is found in the ocean) but, it just made my eyebrows go up a bit.
BTW, I didn't notice that the file was already downloaded more than 70 times. I hope everyone knows it's a work in process

While playing I found out the AI found their cities, and then expanded, so I didn't see what you saw.
I also saw volcanoes were set to 100. Which means that every 100 years there will be an eruption - so that's why they were erupting all the time. I've now set it to 100.000 which means that there probably will be far fewer eruptions

If you like them: the base game has it to 5000 - which means it will probably erupt once a game
I should prob set it at that as to mimic civ1 disasters ...
Anyway.
I have cleaned up the tech tree - along with some of your suggestions. Thanks.
I need to check if everything is 100% ok, probably not, but I'll get to that later.
The costs also need to be adjusted - I haven't done that yet either.
Since this is not a graphics mod, the leaders are still the Civ1 leaders.
I'm not going to re-name the Russian leader Catherina into Stalin... that will be another version of this mod.
Somehow, after building the first city, the game asks to build a blank unit - I don't know what's up with this.
I made the regular military units 2HP and the Vets 3HP.
Do do list:
- clean up the improvement list
- see what's up with the disappearing entertainers
- Tech Tree: check all requirements
- Tech Tree: fix the costs of techs
- see if there's a way to implement Diplomats and or Caravans.
- look at the air units
- ...