Of course just a moment after asking dumb questions my game nicely recreates the Nomad's issue.
The episode of hand-to-hand with Ray:
Turn A: Ray moves and sets HtH overwatch in anticipation.
- nobody approaches him, no trigger. Ray is sad.
Turn B: Ray moves and kicks a guy, twice (the guy is a lightly wounded). He ends a turn normally, all AP used.
- the second guy moves into HtH range and is attacked by Ray, despite him no overwatching.
Turn C: Rays starts the turn with less AP available - probably used by the unexpected attack, as Nomad described.
Daithi, how goes the ranged code combing?
Suspicious fellow this one:
Not triggered overwatch between A-B -> triggers unwanted overwatch between B-C if the window of opportunity occurs.