In the Windows 95 days, I played this game:
You control a futuristic plane.
From a top down isometric view, with fairly decent 3D graphics
Camera is fixed with you at the centre.
The first stage is a forest, not very dense.
You mainly destroy other planes, and turrets shooting at you.
Distinguishing feature is the destroyed enemy ships will drop weapons where you can pick up.
I also distinctly remember one enemy plane with claws that would charge at you.
Second game, this one in the Windows 98 days:
It has an RTS interface, but it's an action game.
Distinguishing feature is the characters are all toys. I used to think the game was related to Toy Story, but realised no RTS Toy Story exists.
It's not Army Men (Nor Toy Soldiers). The characters are much more bigger and distinguishable.
It is level based.
At the start of each level, you pick a number of characters. There are 6 types. I think you can have less than 10 units in total?
As you go through the stage and defeat enemies, you get points to rehire more units.
The stages all takes place in a house environment.
You pick characters from a Toy Chest.
The character designs are all cute, toy story-like. They are not army men figures.
I remember a rocket launcher guy, a brute force melee guy.
Stage traps including spiked floors, flame throwers... It's an action game where you also have to move your units to avoid those traps.
Upate: After a long time, I found a post that gave me the answer. It's Toy Soldier Squad Commander
https://www.youtube.com/watch?v=e8xzoXqOyUI
On a side note, anyone else played WarWind?