+1. Auto sheathe is no good. Ive been hit by quite a few arrows as ive gotten out of combat range.
Ive stopped playing the game, coming on two weeks now, until its fixed up a bit more (there a quite a few issues that need addressing). Though the last time i was slogging through it i seemed to have adapted to not leaving the invisible combat radius during a fight. Going so far as to literally chase down a wolf, for no other reason other than ensuing my character doesnt sheathe his sword. Though i wasnt thinking that directly. I was more thinking "i cant let it get away from me!". It changed my playstyle somewhat, from a more immersive, slow attack pace to one where i feel im in a tightly confined fighting pit where the trick isnt the fighting as much as ensuring you never leave this invisible ring, for fear of those 2/3 archers getting free shots at you. As your enemies move, so does this invisible ring. That makes me rush the combat, which i would like to take my time with. Id enjoy it more that way.
Auto-sheathing is also creating to an issue with using the manual target-lock feature.
That manual target-lock feature drove me up the wall. At least from the aspect of using a controller. If all of the enemies im facing are standing next to each other, i could cycle through them either left or right. Fine. But if they stacked up, i couldnt cycle through them up or down (closest to farthest). It was woeful. Unlocking target and re-locking in a clustered group was cumbersome too.
As i slowly threw off the shackles of the target-lock feature it dawned on me... back when i played the Witcher 2, i had disregarded the target-lock as well. Things started improving from there. After that i only ever used it for 1 on 1's, against a large foe that required the use of dodge rolling.
Between playing TW2 and TW3 i played Dark Souls 2, which i religiously used a target-lock for. THAT game does it well, this game does not. I would recommend avoiding it, if you're having the same issue with it as i was. It was because of my DS2 playthrough that i gave the target-lock in TW3 so much time, until i realised it actually isnt the best way to play this game (at least in its current state).