I would like to be able to revive NPCs that go down in combat as well. It doesn't make sense that we can use the scroll on a party member and not on anyone else who just died.
However, that would perhaps cause an issue with people who are scripted to die. Maybe NPCs who are helping you in combat (or who you are helping) could instead go through their saving throws and be revived like party members.
With regard to the scrolls not working when targeting party members, I have found the targeting very picky. I have to try a couple times (make sure I'm close enough, de-activate and re-activate the scroll, have the correct camera angle, make sure it's not targeting the body lying underneath my party member, etc.). However, if all that checks out and it's still doing it, then it definitely sounds like a bug.
