They fixed psychic guards in Skyrim, even. If you were detected committing a petty crime, you could sheathe your weapons and they probably wouldn't care unless they're already arresting you - except for the dialog option for "I don't have time for this. Do you?". If you were detected committing a murder, of course they would arrest you (or just aggro on you depending on your bounty or who you killed) without any chance of talking your way out of it.
And your bounty would get removed if you killed everyone who witnessed your crime.