This has to be a bug, not initiating dialogue with enemy and instead attacking them. Once all is said and done the Paladin who helped in the fight accuses me of murder, despite the scarecrow being a villain -.-... Why am I being accused when he is clearly trying to kill me and them?

Everytime you start battle with non enemy character, it's villainous behaviour. Real heroes talk with potential enemy and defend, not attack.

So yeah, you are murderer.

Oh c'mon this guy generally tries to kill you, besides getting an advantage in these fights is often important. Plus the bs that some enemies pull on the first turn, makes it is often preferable to begin fight right away.

Well, the paladin cannot know the crow "would" have killed you if you had not attacked - and neither do you? So he considers you, rightly, a murderer.

And "attacking first without a provocation because it is easier"... how is that not murder? Just don't do it when a paladin is near and all should be fine.

I received help from Paladins by accident, but it was really helpful in my case. It's not hard to run to them in first or second turn of this fight. If you don't find yourself villain, than don't attack people (or scarecrows) first.