The "logic" behind not being able to hide while within an enemy's sight range is that it's try to play hide & seek against someone who's always peeking: It's no good trying to hide if they can see where you go.
Of course, the logic falls completely apart when your Thief has been Blinded: You can go Stealth when you're only 3 feet away, because according to the game engine, if YOU can't see THEM, then THEY can't see YOU. Strange but True.
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Volothamp's Comeuppance
Everything you ever needed to know about the entire Baldur's Gate series......except spoilers.
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