The couple of posts I’ve put up so far (dwarves & abyssals) were armies specifically built for KoW. This is the first of the Kingdoms of Men armies that got ported over after the death of WFB.
Back then it was designed as the personal bodyguard/household troops of a merchant prince (actually a gold wizard) who had to flee after paying the wrong people with coins that turned back into lead. After v3 drops will actually work out some mantic fluff/find a home for them in Pannithor. The red/blue scheme for the dwarves was chosen to tie in with these guys.