The way they do this in Shining Force 2 is complete trash
So when you get your basic bitch team, you have the option to upgrade them as soon as they reach LV20 or wait till they reach LV40. if you do the latter, by the time you're done grinding them to LV20 after upgrade they are so fucking strong, everything that attacks them deal only 1 damage. As you progress through the game you wind up recruiting members that have already been upgraded, but their defenses are so fucking terrible they go down in 1 or 2 hits, including the robot and golem, which are SUPPOSED to be tanky.
Incidentally I also play this game on "OUTCH" difficulty, but even on normal difficulty the new Wizard and Master Monk you get take massive damage.