don't take my word for this, but stances appear to be functional - i cycled through them with a group selected and each member of the group correctly began to change behaviour for each stance, so turning tail for retreat, moving in to attack for pursuit.
I think they have been working in a slightly wonked way: In previous versions if I had ships selected AND an enemy ship targeted, they would respond according to the selected stance. But ONLY if an enemy was targeted. My concern currently with stances is that there doesn't seem to be a way to set it for individual ships. I can select 1 Supply ship, set it to Retreat and my entire fleet runs away...cowards.
Edit: Stances work to a degree but have issues -
1. Applies to ALL ships, not individually
2. MUST have enemy ship selected BEFORE selecting stance, but it does seem to carry over to the next target so...
3. The last Stance used becomes the new "Neutral" for the next round of combat. i.e. Round 1 ends with Pursuit selected. Round 2 begins, Pursuit is still listed as the current stance but actual ship behavior is now Neutral. So Stance behaviors are reset to Neutral at the beginning of each round, but the Stance bar does not. And all other stances get shifted down the list. For example, if Pursuit is now the new Neutral, then Neutral becomes Retreat, Retreat = Stand Off, and Stand Off = Pursuit.
One other thing I found, Battle Manager works perfectly when attacking enemy systems (still crashes when accessing in friendly systems). Fleet Formation Editor also works as described when combined with the Battle Manager. Although, I did put all my ships in the center (#2) box but they responded to keypress of 1 for selection. According to the manual, the box number ought to be the group selection number also. Oh well, makes more sense that my only group be #1.