@synchromesh, It is not a bug I wish it was, Lee set it up that way so the hostage would run away to safety. However, I do agree that you should be able to set it as an ally, enemy, or even neutral depending on your game. Hopefully, this will be updated when RPG comes to Max which I am waiting patiently for lol
The ally use, once you release the hostage, they can help you defeat enemies.
The neutral use, they can give you information about the enemy camp.
The enemy use, well I have not figured out a good use for hostage under that title except shooting them since they run away and do not do anything useful lol