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Last night, playing my second beta game as the Union, in the Spring of '62 the South pulled all their forces from the west and rendezvoused with the ANV in Richmond. My AotP, never one to back down from a challenge, marched into F'Burg and awaited Lee's attack. Well, it came the very next turn. 258,000 Rebels against my 180,000 Yanks. Let's just say that it was a slaughter with 65,000+ casualties and a union defeat.

Has anyone ever seen the AI do this before?

yea
 
I have seen it from both sides, I have seen the Union try to mass all of the Western Armies with the AOP (except, I was able to piece meal em, before they all combined
 
some changes were going to be made in the next verison of the patch, to get the AI to double think it's combineing ideas

I had Lee mass with Longstreet and Jackson for over 300,000 against my 185,000 AOP for a slaughterfest twice. Once in the west and once in the east. It wasn't pretty.

I've been a bit luckier... the AI in my three games has pulled the ANV out of Virginia to join forces with his western forces about a year into the game.  My western forces were usually a bit better off since they had been getting the new equipment, training, and best leaders to fight along the Mississippi.  After a few turns of hammering at the former ANV in Kentucky there wasn't much of a confederate force anywere.  (combined with the AI tendency to try and swing around my right flanks I was easily able to capture vast numbers of CSA troops in a few turns leaving the CSA devoid of any large force except garrisons.)
 
Dude