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Yes it does, you are training to be a blacksmith, the enemies you fight are training to be combatants. Combatants beat blacksmiths in fights, unless the blacksmiths superior equipment makes up for the skill difference.
The bandits and monsters you face aren't training at all. You know how I know this? I can rest for weeks and they won't improve their combat skills. If I increase some skills in only an hour, they will. You can't really bring that kind of argument to the table, the idea has so many inconsistencies and flaws. If they were all constantly training you know what I'd do? I'd just quit the game. No point, I don't want to spend 2/3rds of my time in this game just training/improving combat skills to "keep up" with bandits and trolls. Plus, while enemies might spend lots of time in combat, that doesn't mean they should be making progress through doing so. A bear doesn't learn jujitsu while you're off picking locks, you shouldn't expect enemies, wilderness animals especially, to become significantly more challenging in combat after a few days of cat burglary, that's just ridiculous.