I have been clearing a camp on siptah, switching between steel arrows and blunted arrows - at some point, steel arrows just stopped working - I could aim, clear shot, the arrow would fire but do nothing (they would not even get used, stack size remained constant). This was with agility at 15 with the 2nd perk set for ranged weapons travel faster and do 15% more damage.
This seemed to be when switching arrows from the hotbar as putting them back in my inventory and dragging them to the bow from there caused them to work again.