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Funny , the AI decides to build in the territory of the enemy AI

That's not silly, technically that swine farm is very close to the farm But I guess the labourers forgot the serfs can't swim...
At the moment it just considers line of sight, not how long it takes to get there. Obviously we'll be fixing this in future, Krom can provide more details since that's his area

That is a bug in r4001 remained from r3392. We did not included new AI yet because it's still in development.