I'm on my first-ever BG:EE playthrough. I like a challenge, so I usually pick the hardest difficulty settings for games, I also have a preference for hard games in general (I'm a big fan of Dark Souls and Sekiro). In case of Baldur's Gate, however, I chose Core Rules difficulty, which sounded reasonable for this kind of game that I wasn't really familiar with, as I previously had close to none experience in AD&D isometric classic RPG games. From something similar, I played Fallout and Fallout 2, and loved them.
Thing is, I wonder if I underestimated myself, because the game feels too easy. In the beginning I've had a little trouble with some super fast spider I encountered, and basilisks, so I just came back to kill them later, and there was not much trouble other than that. I started Chapter III on Level 6 (was exploring pretty much) and so far there haven't been any REALLY challenging fights, I'm in Chapter IV now, so I guess that will change soon?
So, about the difficulty settings, is there any difference other than increased enemy damage between Core Rules, Hard and Insane difficulty levels? Is there like more monsters or better enemy AI on higher difficulties? Does that work any different for BG:SoD and BG2:EE?
And what about the Legacy of Bhaal mode? It sounds like a hardcore mode for the game veterans only, so it's probably a good idea to stay away from it?