Okay, you are missing some files from your mini-mod, and the playfile doesn't work because of this.
However, i loaded up the design , added the "j" character and stepped forward into a combat. The combatant did not have a club, but it sitll just guarded. All of your NPCs just guard.
So, I do what i do in these kinds pf sotiatopms - I loaded a fresh design and tried to duplicate the problem so I can show Paul. Why? You didn't include all of your files. I cannot duplicate the problem. When I create a new design, all of the NPCs attack. I checked to make sure this happens at all 3 distance settings, and it does.
So, there is something goinng on in your databases - I do not mean that you made a mistake.
I just haven't tracked it down yet.
Your databases are very old - the config.txt you included was very old. When I tried the playfile the border graphics were all wrong.
Can you tell me what the most recent editor was that you saved your game with?