I don't know what caused this, but I am pretty sure it's a bug and not a feature.
I vaguely recall some issues with the min. angle setting of projectile weapons that prevented units from shooting downwards. However, it would require a huge height-difference to account for your horse archers being unable to return fire. It would not explain the skirmishers' range, either. AFAIK EB hasn't changed the minimal angle settings, anyway.
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