This issue has existed since the beginning of time, and its still present in this patch. In my game, the German AI declared war on Austria which was part of the Pact of Rome, then it demanded Sudetenland (which was refused) and went to war with the Allies. Despite doing a terrible job in the war, they decided to go Danzig or War and even declared on Denmark and the Netherlands all while getting beat very hard by the Allies and the Pact of Rome. To add to that, they even went down the National Focus of getting a War Goal on Switzerland all while losing the war. Its also worth mentioning that they still push across the Maginot line by force like there is no tomorrow.