Can't say this is necessarily an "issue" per se, but I can't really tell. Anyway, I just started a new game as Kraxis (random medium world), and as soon as I closed the initial book page that introduces your empire, a message immediately popped up about a faction being defeated (it was Gilden). I hadn't ended a single turn yet, so I presume that the AI is allowed a turn before your game even begins, and it possibly ran the sovereign into a neutral monster and died. Technically I guess this should be possible, but from a game design standpoint it's a bit lacking (had they been my only competition I would've won the game without ending a single turn).  I immediately saved the game and have it around if someone wants it.