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.