undead AI

I'm playing a SP campaign against 7 AI opponents on a large random map. Very early on one of the opponents became listed as being destroyed. Thing is the faction in question still had at least 3 planets and quite a formidable fleet? After getting "killed" they just stood there doing nothing, except defending when I attacked them. The other AI's gave some missions to kill the "dead" factions ships and facilities every now and then as well. Though I couldn't have the pirates attack them anymore.

What's this undead thing? Has anyone encountered it before? Is it just some bug?
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The AIs can surrender now before they're completely wiped out. When they do, they have the behavior they describe (they don't do anything other than defend with whatever they have left).

However, getting missions against the defeated AI seems like a slight oversight in the mission criteria, sounds like they weren't adjusted to account for surrendered-but-still-on-the-map AIs :P