I don't know about the formula, but each unit (or rather each unit class) has an auto-resolve battle strength value assigned, which you check with Modding Tools, under the Unit Database :
example below, with the "Animal Class" : they have a -1 combat strength applied for auto-resolve.
From what I've seen, it ranges from -1 to 1, and applies to all classes, but I haven't checked it thoroughly.
Doesn't it just conduct the battle with both sides controlled by AI? This seems to me the only sensible way. Anyway, I don't click auto-resolve if it's possible that one of my units suicides.
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