I’m on the top level of Dragons eye, happily killing lizard men and beetles, when I start seeing things like

Lizard man attacks lizard man
Lizard man hits lizard man
Etc….

WTF I think.

Then I spot a group of lizard men fighting each other. Cool I think, they’ve set up some kind of Lizard man civil war for me. Some political intrigue, while I decide which group of lizard men to side with. I’m impressed.

After a while I notice that some of the lizard men have green circles round them, and on further investigation I can order them around. Ah! So its just some bug, not cleaver programming after all :{(}. Still three new members of the party made clearing out the rest of the level fairly easy. Except for the lizard King: After I spoke to the Lizard King my lizards went back to being enemies :{(}.

Anyone know what is going on here?

I've seen this happen a few times with the Lizard Men right before the Lizard King's room, and I have no clue why it happens. I usually just kill them off the bat anyway, since like you said, they go hostile when you talk to the Lizard King. Better to get them out of the way when they're no threat

-Wrath

I had this happen before. Right when I got to the Lizard King's room. I talked to him and then noticed his grunts were all friendly, so I had them gang up on the King and his Shamans and beat the pulp out of them. Then they turned red and I had to put them out of their misery. Glad I'm not the only one to have this happen to me. I thought for awhile I was seeing things.

I believe that there is a chance with morale failure for them to fight each other.