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Italy had already joined the axis when Germany declared war on Saudi-Arabia.
Germany is now at war with SA but Italy not. It has to declare war on SA too which raises USSR mobilization again.

Is this a bug or WAD?

As Saudi Arabia is a US Minor, once the USA enters the war, Italy will automatically be at war with Saudi Arabia.

If that is close to happening in your game then it might therefore be better waiting for that, than to raise Soviet Mobilization again with another declaration of war.