Cause Curgen dual-wielded hammers, duh [e digicons]:banhammer:[/e] [e digicons]:w00t:[/e] [e digicons]:banhammer:[/e]
Nefaste
I've got a save game here where the AI built two cities surrounded by swamps and next to rivers. I conquered both cities and the only thing either can build is piers. No other build options (insufficient space). AI should probably at least take that into account when selecting sites.
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. Techn