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I have been fighting a war where I've been doing a lot of commerce raiding. A very common experience is when one of my raiders is "intercepted' by an enemy KE. If the raider is a CA, I can select the KE as the target but my ship won't actually fire its heavy guns except maybe the turn I set the target. When I look back later, there's no target selected. Is this WAD? They're saving their big shells for "worthy" targets?

This does sound like an issue. Can you confirm that there are no other targets that the CA would prioritize in this engagement?

If I see it again I'll confirm. In the battle in question, the only opponent was a KE.