So I was thinking back of when I ran from dragons.

I was running away from a dragon as fast as I can trying not to get murdered and looking for good cover to hide in and I run past some bandits as the dragon is flying around harrassing everyone.

The dragon lands and a bandit dies from a dragon attack.

The bandits see this and see me running the heck away from a dragon and shout about how I'm messing with the wrong guys and they begin trying to murder me.

This seems like really bad AI. They should either be trying to defend themselves from the dragon or running away but ignoring the murderous dragon that ate their buddy so they can focus on attacking a guy who is busy running away and hiding just seems... stupid.

Maybe they thought you summoned the Dragon...