Yeah I've seen this. It happened in MTW 1.00 as well, though it was fixed in the 1st patch.

Basically the Host sees a different battle to the rest of the players. It is a real bummer, to be sure. Yet another reason RTW isn't worth the plastic it came in...how a huge bug that was also in the 1st version of MTW got through testing absolutely beggars belief. Yet again, CA show a distinct lack of Quality Assurance, which is by far and away the most crucial process in game development. They can claim that they had limited time all they want...but this bug is FUNDAMENTAL, and it is shocking that it still plagues us TW players.

I made the mistake of taking a day off from America's Army to give Rome another go. Less than 2 hours in, I've already given up and gone back to AA. Having AGAIN watched the AI use my 6* general as reinforcements and then charge his unit right into the heart of the Gaul's spearline, I have lost taste for TW games.