So I encountered an interesting AI hiccup recently when I was going through Gladiatorial Arena Qualifiers. The Armored Dog in that scenario had drawn his Ill-Fitting Armor card, and tried to use Viscous Strike. Amusingly, he was standing next to one of my characters when he did this. However, he apparently really wanted to get at one of my other characters who was a square out of his reach, because when the armor made it impossible for him to reach the character he was aiming for, he decided to simply give up the attack altogether rather than you know...try and hit the guy who was standing right next to him instead.
This is not really a bug, but a lapse in AI judgment (which is extremely common). The AI will not always go for the character closest to it.