I would like to add here that I tried this on an official PvE server and I can’t replicate it. Everything is as it was before and I can’t damage my own pets/thralls or do anyone else do any damage to my pets/thralls.
I loaded a single player PvE game and Got the same results, nothing changed.
This must be just for PvP and PvE-C settings only. Just adding my 2 cents on this issue, I hope it gets resolved soon, good luck to you all.
To the OP, what settings did you use? I’ll try them myself to see if I can replicate your issue. @Etarnak