In campaign, to set the ambush (episode 2 adapt) I've try again and this time it worked perfectly.
(my issue was happening during the showcase)
So i've no explain... I'll try to reproduce the bug, and let you know.

Visually it not always look like they are observing the right direction, but they do. I have no issues in custom scenario's.

my guess is that after contact, the AI is aware of some enemy that the player cannot see, so they will always try to look at their target... I come to this theory because it usually happens after contact.

Hey and thanks for the report!

(my issue was happening during the showcase)

From the pic it looks like a Commanding Showcase. The AI is probably focused on the enemy boat.

Once the AI sees an enemy threat, it ignores the watch command and aims at that threat (an actual AI unit needs to have a clear visual (shared report is usually not enough) on the target to ignore the watch command and try to aim or shoot unless on hold fire).

Could you please confirm, that this could apply to observed situation? Let us also know what you think. Thanks!

I believe the AI should always obey the watch command, because most of the time the player will give the AI their sector of fire (watch command) so that there will be some kind of round defence and protect the flanks.

The problem happened again and I can't spot what they aim.

i Agree with Mr_Centipede. This is a complicated order to give so AI should obey it in priority.

Exception should be add with close enemy or enemy firing.

Maybe the AI team-mates shouldn't react as individuals but as a team. So the closest or the one which is assigned to the direction should be the only one to be aiming the spotted enemy. So the rest of the team can obey the order and get ready for further incoming.