Let's say you have two interiors. Interior A, and Interior B. In A you have an NPC or a door or anything else that can be targeted. In B you have a subspace to divide two levels split by a ladder through the floor or something. That subspace happens to encompass the door that leads from B into A. If you quest marker anything inside A the markers will malfunction and be pointing off into nowhere with a green marker. Even if you're out in the wilderness somewhere. Move the subspace so it no longer encompasses the door, and the markers begin working as intended - until the player steps into the bounds of the subspace. At that point the markers fail again.
I was racking ye olde brain trying to figure out why some markers in a quest weren't working right, then thought about the subspace and decided to confirm by moving it away from the door. BAM. Fixed it right up. Of course, that isn't really a solution if the subspace is necessary to make NPC navigation work right since the door will no longer be covered.