Unable to perform stealth kills or takedowns on most NPCs

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I'm unable to perform grabs for stealth kills/takedowns on NPCs not clearly marked as enemies. I only possibly get the option to talk. No options appear for police NPCs. Doesn't seem to matter if they're alone and away from others or not. Not sure if it is because grab uses the same key bind. Is this intended behavior or is there something I'm missing?
 
It only works on hostiles, or NPCs designed to be hostiles. Doesn't work on civvies on the street.
 
It only works on hostiles, or NPCs designed to be hostiles. Doesn't work on civvies on the street.

That's disappointing in a game that's supposed to be an RPG and open-world. I hope that this functionality will be added in an upcoming patch or that the modding community can at least add it in.
 
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