Targetting with Move Cursor/Target Cursor Right does not work

I am playing on PC. I normally use Tab to select enemy, and tab by default is set to keybind Cycle Through Enemies, which works fine. I changed Tab keybind to Move Cursor/Target Cursor Right. I am experiencing a problem which occurs during fates and groups. I use tab to select enemy, and when I cast a spell, my target changes automatically to a PC player who is also attacking the same mob. My filter is 'others' when this happens. But it also occurs if filter is set to 'enemies'


Time:
Frequency: Always
World name: Gilgamesh
Character name: Flow Rinzai
NPC name:
Monster name: any enemy
Class/Level:
Party or solo:
In-game time:
Area and coordinates:
Steps:
1. Change keybind tab to Move Cursor/Target Cursor Right (keybind menu -> system)
2. Press tab to select enemy
3. Cast spell on enemy
4. If another player is also attacking that enemy, my target will automatically switch to that player.

I am having this same bug but using an Xbox controller.
All filters are set correctly (my son who is NOT having this issue set them like his is)

Character name: Helli Fyrelyght
Server: Diabolos
Situation: groups of players and enemies (such as fates or instances)

In my case steps to reproduce:

Press A to target enemy (will target player 100% of the time)
Try to cycle away to enemy using direction pad: fails.
Use the B button to cancel.

Repeat above steps until by some miracle you manage to target an enemy.

We appreciate you taking the time to report this error to us. However, there are still some details that we need to collect from you before we are able to investigate this properly. If you could please provide the following information, we will make sure that your report is looked into so we can try to resolve it.
*Specific examples of needed information.

Can you please confirm that when targeting an enemy you are seeing the target marker and not the target circle.

In my case I see the target circle first.
If I press A, it will click on (in order of likelihood of being targeted) any Carbuncle, random NPC, self, then finally maybe an enemy. (this is with the target circle above the head and on ground, while scrolling through targets it is the target marker that moves)
Most often it goes Carbuncle, NPC, Carbuncle, self, NPC.......etc (by using direction pad. up/down or sideways seems to have no effect)
At that point I usually cancel the attempt to target with B and try again.

Please note the above is 100% reproduce-able in any FATE, or large group of players/enemies/NPC's


I have all filters set to enemy only.


I know by hearsay that there are level 50 linkshell dungeon groups that refuse to take anyone using a controller because of this issue.

Thank you for posting the problems you're experiencing with the targeting system. I have made sure to submit all of your information to the development team, and they will thoroughly investigate this matter, based on your report. Unfortunately, I cannot guarantee that a direct response will be posted on this thread, but I do recommend checking Here or Here for any details regarding the development team's investigation. Thanks again for your report!