The original report is quite thorough and very detailed.
Here is the specific report originally documented on 5 July 2017 (there might have been earlier reports?)
Beethoven wrote:
ADDITIONAL RELATED BUGS --- Escorting your allies' bombers/CAS doesn't work
(see AIR ESCORT TEST MULTI-COUNTRY.hoi4)
This also raises the question - what happens in other cases where planes from multiple countries are fighting in the same air zone? Does the air combat system work properly in those cases?
For example, what happens if you try to use Italian fighters to escort German CAS? Do the Italian fighters actually effectively stop the German bombers from being disrupted by Allied fighters?
No, they do not. Only German fighters are capable of escorting German CAS/bombers.
In the test shown in the screenshot below, I set up German fighters escorting German CAS over northern France, while Germany attacked the Maginot line. In this case the German 1940 fighters were able to stop the German 1940 CAS from being disrupted by 1000 UK fighters (1936 models in this test). This resulted in 384.3 French troops being bombed in 1 week:
However, if instead of German fighters you switch those to Italian fighters, the identical Italian fighters do not escort the German CAS whatsoever. In this case, a high percentage (not always 100%, because the UK fighters in this test are not that great) of the German CAS gets disrupted. Note, however, another bug - the "our bombers disrupted" on the interface doesn't work. As a guess, this is probably because CAS are not considered to be "bombers" (but rather "support"), since the interface DOES show when strategic bombers are disrupted. You can also see that the air losses are different in the two scenarios. In the first one, when escorted by German fighters, less of the CAS gets shot down (because it is actually being escorted). The Italian losses (not shown on the German interface) also make up a difference in terms of fighter losses:
Credit to Beethoven for his comprehensive analysis and reporting on this game mechanic.