One thing I noticed when taking Pet Pal on a character is, that sometimes animals like the fireslug engage in dialogue with the (seemingly) nearest partymember or the first to get in sight. Even if it means they don't have the Pet Pal talent.
In case of the Slug and the Source Dogs this can lead to a fight you could have avoided otherwise.

Could you please make it so that these automated dialogues with animals will always use the Pet Pal characters if he's in range?

Agree, had to reload few times because of that

I would honestly like to see npc's always initiate conversations with the selected character in single player games.

Only if he's in a reasonable range. If a Character splits from the group and sneaks through Fort Joy he should obviously be the person that gets engaged with a dialogue. Regardless what character you selected.

Same with Pet Pal but I'd love a tolerance range, how far you can be away from the character that triggered the talk. E.g. if the maximum detection range to start it is 1000, the Pet Pal character will also be automatically spoken to if he's in 1500. Or you can join the conversation later on and then change dynamically to the Pet Pal Character.

There should also be a priority;
Pet Pal > Selected Character > Player Character > Follower

I figure a reasonable distinction is if your characters are chained, they're in close enough proximity that whoever has Petpal should get the dialogue option; if a character is on their own... well, they're on their own.

I of course meant the character should be present, chain range is fine. A big part of the reason I feel this way is also in a single player game the character you make is sort of your main character, seems odd that on the last play through I had she was addressed less then anyone else by npc's.

If every character is going to feel like a main character I would like more control over them in all aspects, I was under the impression my character would be doing most of the talking and they would chime in or agree/disagree when appropriate when I read about the system before playing.

That or if they initiate dialogue have them answer on their own maybe based on how they would answer and let your main try and cut in on the conversation if they disagree?

Personaly I would like if Larian update the dialouge menu to better mirror the one used in Neverwinter Nights 2:Storm of Zehir campaing,where the leader can back off from a conversation in favour of a more competent sidekick.