The "lesser version" Thor was talking about was because Kratos was actively keeping his emotions in check, and his anger got the better of him at the end of the fight. Same deal with Heimdall, as pointed out by Mimir.
By trying to "be better" as the game says, Kratos opts out of vengeance in favor or peace & justice like Tyr. That's why he stops fighting Thor in their last fight, and Thor is puzzled for a sec and even asks why is he stopping.
The whole story is plastered with Kratos trying to hide his identity and trying to be as low-key as he can, while also holding himself back all the time (rage wise) so his son doesn't realise who he actually is. Teaching his son to fight, letting him play a bigger role each time he improves, etc.
The moment Thor and Kratos clash as destroyers, Thor is significantly stronger and beats Kratos, because Thor has resigned himself to this role, where Kratos rejects it.
The God of Thunder then entered Kratos' Cabin, closely followed by Huginn and Muninn and showing off his enormous size compared to the already very tall Kratos. The two legendary gods gauge each other, a mixed - and shared - feeling of respect and curiosity.
The TRUE Reason Kratos Became Weaker FINALLY Revealed | God of War Theory
Why did Thor spare Kratos?
Even though Kratos had killed most of Thor's family, Thor spared Kratos because Odin had plans for Atreus. Many Norse gods die in God of War Ragnarok, but it would be a daunting challenge to the future of the God of War series to kill its long-time lead, especially near the beginning of the game.
Although Kratos never gets to wield the hammer, given his own extraordinary godly strength that slightly surpassed even that of Thor and even being able to hold Mjolnir back with his bare hands when Thor threw it at him, it's very likely that Kratos would be fully capable of using the hammer if he wanted to.
Kratos is definitely strong, and definitely strong enough to contend with Hulk.. But for the most part his feats are inconsistent. Hulk on the other hand is far more consistent, amd regularly shows an Incalculable level of Strength. He's bested and is seen on the level of the likes of Thor, Hercules, Sentry, and more).
Now onto their power and durability. Kratos should scale to GOW Thor, as we see him exchange blows with him in their first battle (despite holding back and being weakened by Fimbulwinter, though he did get killed and Thor wasn't allowed to kill him), and in their final fight Kratos defeats him.
Kratos' single biggest strength, but also his single biggest weakness remains his rage. The pure anger that stems out of Kratos, becomes an integral part of his motivation as he continues along his journey of vengeance, redemption, and transformation.
Despite his power, however, Heimdall is somewhat cowardly and fearful of people of greater power, as he backed down from harassing Atreus due to Thor's intervention and begged Kratos to stop attacking after the latter impaled his arm to the wall with the Draupnir Spear.
The reason behind Thor's incurable wound is due to the Eitr imbued in the Leviathan Axe. In God of War, Kratos throws the weapon into the Lake of Nine and awakens the World Serpent, who rises out of the water. Jormungandr returns the Axe to Kratos by spitting it out and, in the process, covering it with his venom.
It is also implied that he has an intense fear of Kratos as well, as he knows nothing about him except for the fact that he's extremely powerful and having fought and killed one of his sons, Baldur and his two grandsons, Magni and Modi in battle.
Kratos draws strength from his rage. The "lesser version" Thor was talking about was because Kratos was actively keeping his emotions in check, and his anger got the better of him at the end of the fight. Same deal with Heimdall, as pointed out by Mimir.
Other characters like Alucard, Ōnoki, Anos Voldigoad, Lelouch, Kaguya Otsutsuki, and many more possess unique abilities and powers that can disintegrate, immobilize, or overpower Kratos in combat.
However, despite facing off against the powerfully combined opposition and the wrath of Thor, Thanos still ultimately triumphed as he completed the Infinity Gauntlet, using it to finally complete his goal and had then caused the Snap, resulting in half of all life in the universe being wiped out at the snap from his ...
Unlike the others, Zeus is not worthy to lift Mjolnir, but through a loophole, he can anyway. If Mjolnir is to enter his domain, Zeus's MCU powers should override Odin's enchantment, meaning he can hold Mjolnir. He may not be worthy, but technically Zeus is the fifth character who can lift Mjolnir in the MCU's Phase 4.
Still, in terms of pure feats of physical strength, Kratos seems to have the advantage. However, that mostly has to do with Goku's lack of lifting feats in comparison to Kratos.
