Its not really AI cheating in that sense. There are modifiers in place for the German blitzkrieg which are also in the vanilla game. By themselves these won't make the Germans unstoppable. It is possible for example to halt the Germans as France despite the German blitzkrieg bonus. However with Poland its a different matter. They are going to be far behind in tech levels and quality of units. The German motorised units consist of some armor units. You can see in that screenshot the armor value is only 9.8. That's not all that high and if the Polish unit had some decent AT it would negate the armor value. However failure todo so is very nasty. So here we have a highly exoerienced well led Motorised unit with armor component conducting a breakthrough against an infantry unit in a plains province. Its an unfair fight whichever way you look at it.
The main modifier in that list is the effect of territorial pride. This functions as a multipler of other values so in combination it can be very high. this isn't only for the AI. A German player will also benefit from a high TP during this time frame. An invasion of Germany in 1939 isn't going to be much fun for the attacker.
In any case the modifers for BICE are very high across the board. Most values have been amped up. that basically means if you make mistakes you pay for it more. The AI is included in this. Where it does get extra bonuses is dependant on the difficulty levels and in certain situations. For example the soviet AI during the winter of 1941 gains some hefty bonuses over the german player. This is designed to blunt a players attack and allow the soviet AI to recover and allow the war to drag out into 1942. Without it very little prevents a player from finishing the soviets off without any trouble at the end of Barbarssa. Unfortunatley the AI in HOI3 isn't good enough to survive Barbarossa and recover enough to present any challenge.
The mod is fun once you realise you have to use certain units in certain ways with certain combinations. Stick some decent AT guns in that infantry division and defend behind a river or in a forest. It still probably won't go well for Poland. But some people have reported surviving into 1940.
I haven't played BICE in a while, so I'd like a little clarifications on a couple of things:
So I've heard that Artillery nowadays is halfway a frontline brigade instead of a pure support brigade as usually. Some here have claimed that this is highly exploitable due to Artillery's inherent qualities. True?
Additionally, this was a bit of a pet peeve of mine, but does the AI for all nations now research Ministry of Information tech? I used to at first manually use the console to switch around and make the AI nations that normally don't do this do it, since without it in VII you'd reach a point where all but the handful of nations that do research the tech are completely paralyzed by the need to produce Consumer Goods due to having four heavy Dissent penalties. Eventually I just set the penalty to being player only, to save myself the trouble of the prior method.