Yeah, I see that you don't get that kind of behaviour. The problem is, I have enough CPU (I7 and most of background processes closed/stopped, no freezes). And I don't think there actually is anything to conflict with, as I tested without any other mods activated. Strange stuff.
To be more specific, AI's behaviour in combat feels like they are like, constantly searching for cover while in combat, with no time to actually engage the enemy. They do all that stuff - they see a smoke and begin to search, moving from cover to cover while zig-zaging, they hide, take up building positions... but as soon as they actually see the enemy, they start hiding. I don't think it has anything to do with CPU.
Edit:
Decided to drop a screenshot of addonfolder for your mix in my Arma2folder.
And no other mod activated at all, save for CBAs. A2CO.