I dont know if this can be gamebreaking, but it is for sure making the game less fun...
I understand the idea, people get scared when they see a big spider, Wolf or Bear, but for a BEastmaster Ranger, this is a big problem, since you have to chase NPCs, or have your companion wait somewhere.
Again, I understand that it is a nice touch, but its really annoying, and I am sure along the way it will cause events that will break or softlock quests...