The same thing happened to me. I can sort of understand the guard attacking my party on account of me initiating the fight, but the scarred civilians appearing out of nowhere were definitely a bug.
I'm really enjoying the new turn-based mode, but one thing is really annoying me during combat. Every time a new companion turn in up they go: "I can't do this", "Not gonna happen" and so on. It gets really tiring after 50 plus battles and almost makes me want to turn off the voices entirely.