while attempting a border skirmish all the fighters showed up as hostile, including my nation's. I am aware that this happens under friendly fire situation. However I think that under no circumstance should my nation's bots show up as hostile, including if friendly fire is exchanged.

This is really annoying with targeting since all the hostile targeting commands and the ship list in Targetls show everything together, makes selecting a target a tedious sensor list process.

Is this a problem with TCS makefriends?

shouldn't be, since I have it turned off.