I have seen this too, it really needs to be fixed. In old versions IIRC I lost a battle in Norway and my troops retreated all the way back to Finland.I saw 3 units of Austrian Pandours cross into Prussian Poland from Galicia for a spot of burning and pillaging. I attacked them, the remnants retreated. Attacked again with the nearest army, they retreated. I attacked 4 times in all, they retreated further and further into my territory. I finally nailed the last 13 outside Hamburg.
Quite remarkable really, Lvov to Hamburg in one turn, whereas often my armies cant make it from one city to another in that time.
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