Specifically overland Craglorn - seems to be working fine in delves etc. Ticket reference # 200926-000060. I have 2/2 skillpoints allocated to this skill.
As far as I recall, the keen eye passive also doesn't work for some (but not all) treasure chests in Imperial City and I think also Cyrodiil (it's inconsistent). I should have kept better notes as to where I've also encountered this issue myself.