[mattmillus]

Thank you for that.

Out of curiousity I also had a check how the 'Recount' addon handling this whacky behavior. Lo and behold, its the exact same thing you do:

function Recount.playerExitCombat()
	if (Recount.inCombat == true) and (Recount.onExitCombat == false) then	
		Recount.onExitCombat = true;
		zo_callLater(Recount.doPlayerExitCombat, 1000)
	end
end

Only difference is the 1second vs 500ms delay. I am going to implement this the same way, with zo_callLater(), at least until ZO fixes the event triggering!

EDIT: Testing and this is working great, even with a 1ms delay - no need for 500ms