Mountains viewed from afar appear blurry and in bluish hues due to an effect known as atmospheric perspective.
Photo
Medieval II tries to simulate that effect by replacing the terrain textures with a special set of textures for those mountains in the distance. I noticed the Chivalry II mod uses some very unique brownish textures that IMHO look much more realistic than Vanilla's grayish ones. Here's what I mean (yes, I do use ReShade, but that's not the point):
Screenshot
Compare that to, say, Stainless Steel and the mountains literally pale in comparison (on that note, why is there no green grass in Stainless Steel?). They're also way less detailed:
Screenshot
FYI: Both screenshots were taken on the "Swiss Alps" custom battle map.
My question is: What files in the game contain those textures?
EDIT: It is not the .texture files in data\globallighting.