There are many in-game preset races, but most of them are not playable due to a "2000 points" limit. How does one turn this limit off? Me and my friend are looking at the game and are really confused. Any help is appreciated!

If you select those races to play without editing them first, you should be able to pick them.

This is a bug with the gog version I am thinking. My friend could not sleect to play dragon knights even without editing them and many other races are also unavailible. It seems like this is something from the demo. very unhappy with gog for letting through this bug

As far as I can see, this applies to three army sets: Dragon Knights, Dragons and Giants. It's not a bug of the GOG version.

The reason for this is that way back when SSG, the original developer, made patches for DLR, they increased the cost of dragons to better balance multiplayer army lists. This made the above pre-made army lists too expensive to be legally playable, and they forgot to update them.