At the start of the player's turn, a friendly unit (the observer) is clearly adjacent to the enemy's city (Baden).
Per the top screenshot, no enemy units are detected inside the city.
Later, the player moves two more friendly units adjacent to the city hex. A stack of unidentified enemy units are now detected inside the city hex.

I understood that "recon level" provided details about enemy units' attributes and capabilities. However, it appeared as if any friendly unit adjacent to an enemy unit would, at a minimum, detect the presence of the enemy.
This case appears to conflict with that observation. Does a city provide a hide bonus? Is the friendly observer's stationary position (at the start of the turn) an element of the failed detection?
Oddly, I would assume a stationary unit would be more likely to detect adjacent enemy units, not less.
