I actually think this is intended, as much as I hate it. This isn't new, as it's like this on Live (unless you mean to say that the already-huge detection range grew even larger). I personally believe it's so you can't sneak passed guards at keeps and gates, so that guards actually have meaning and purpose.
This is also true of NPC's when you break into their Home. Dark Cloak is completely useless as they see right through it.
Maybe it works for you but it's not working for me, even if my Hidden bar is completely flat and I use it to try and sneak past an NPC, like to go upstairs, the moment my cloaked character gets near them they turn around and say I'm in a restricted area or something to that effect. This is in 7/7 Medium armor with the passive and Wood Elf passive + 5pc Night Mother's Embrace + 3pc Nightshade + Vampire passive. I'm VERY good at Sneaking and Cloak is being seen through by NPC's when you are in their home on PTS. I have no problem with this, just reporting it as such.This is also true of NPC's when you break into their Home. Dark Cloak is completely useless as they see right through it.
Not true I have used it in the PTS and I have seen others use it and we are able to sneak past them by using shadow cloak..
you just have to have not been seen yet,
Once you are seen they are aware of you (Shadow Cloak will not work) and will call for the guards if you don't leave..
When one goes into the general area of a keep in PTS, they are forced out of stealth until they leave the area. Keep guards have nothing to do with it.