I don't know if this has been addressed in v1.1, but when trying to pick a lock on a door across from a merchant stand at sunset, when the merchant has left for the evening, still returns a message stating that you shouldn't try picking the lock while the merchant is watching.
--edit: Looks like this was taken care of in version 1.1
minor bug, v1.0 - absent merchant 'watching' lockpicking
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