This has been mentioned in some threads but I don't see an issue thread, so creating one.
Issue(s?):
ships following in a division will retreat (sail straight line away from the enemy) when "avoid torpedoes" is enabled if a torpedo is spotted, and continue retreating even when well outside of torpedo range.
Once "avoid torpedoes" is disabled, affected ships will keep sailing away until given a move order, at which time they go into a hard turn which follows the move order, but never stop turning (sailing in circles until the end of the battle).