Lo-Fi Games

Here's the description of the bug:

Put a hostile NPC on a bed that is not yours, and that NPC will still be put into bed. However, that NPC appears to be stading (Normal bed bug?) and not moving around. Later, guards will come in and try to kill that bandit, but will keep missing.

Put one of your own men to sleep in the bed occupied by that bandit to get the bandit out of the bed and that will allow the guard to attack him. Or I believe you can also hold right-click and select pickup and drop the bandit somewhere. When you put NPCs into beds there's this weird visual bug that shows them standing beside the bed but they receive full benefit of sleeping. This also happens for players but as player you can click on the bed one more time to fix it.