Ok, not sure what is going on.
Just started new character, completely legit.
Archery L10, crappy bow, and the vertical is working fine.
It may be something to do with high skill levels, or just crossbows.
Ill keep testing.
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Test with bow skill 450 and noble longbow, doesn't seem so much vertical is reversed, but at close/medium range, while aiming straight at target, arrow goes high, flying over enemy head, i have to aim at feet to get it in the torso.