Yep, that shows the problem nicely. Not good.
I've had several instances now of having a bunch of bandits literally pop up next to me and attack. One group of four or five I could see on the minimap, and slowly moved towards them. I got half way to them (dot on the map half way from edge to centre) and still could not see them in front of me until I got almost close enough for a hit.
When it's neutral NPCs it's bad enough, but when it's enemies on Death March, it isn't funny.