This is normally the case, but IIRC it won't work in phalanx vs phalanx combat. The AI will use its phalanx agressively - and, for some reason, if you don't push back you will take lots of casualties without causing any to the enemy.
Having guard mode turned off might cause some weird issues though (unless you're using alex.exe), with your phalangites "moonwalking" out of position - creating gaps in your line.
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