The character should always face the direction of the mouse cursor (not just when the cursor is 1 block or less away), and the hit location indicator box should always be reliable. Only objects under the mouse cursor should be interacted with, and the character should never swing weapons in a direction other than from the character to the cursor. It's exceedingly unintuitive and consistently frustrating to swing in unintended directions. To any experienced ARPG player, this will likely be an immediately obvious flaw. And, I frequently find myself hovering over and clicking machines with my cursor only to activate other objects due my my character facing the wrong direction. It is reasonable to expect to interact with objects when clicking on them. It is not reasonable to interact with an object on the opposite side of the character when doing so. I have also unintentionally given gifts to NPCs while trying to interact with objects. If other people disagree, make it a setting. However, as someone who plays games exclusively on PC, this has had a significantly impact on usability. And, it is the only major issue I have encountered in the game.
