Apparently, if you steal from an NPC and they become hostile, it is possible for you to kill them even with the option turned on. While you cannot directly target the hostile NPCs, you can still accidentally kill them with ground-based AoEs, Ritual of Retribution, even the CP-based effects like Riposte will cause them to die eventually (which, by the way is being applied and returning damage with EVERY hit even while NOT blocking). Where do I file this bug in the client?
In short:
Riposte is proccing on all hits, even while not blocking, with apparently with no CD.
Prevent attacking innocents is broken and people will accidentally rack up large bounties because innocents can still be harmed with AoE skills.
Anyone else experiencing the same?