Ok, so I’ve done some research with throwaway characters.
I can confirm there is definitely similar behavior happening on the latest version (0.C-15562).
I made a fresh character, gave them full heavy survivor armour and a kevlar vest, and threw a grenade a few tiles to the north.
Detonation three tiles to the north:
Detonation two tiles to the north:
Detonation three tiles to the north:
From these and many similar attempts, I’m noticing a couple things that are off.
1: Damage seems to be inordinately clustered to a single location, with the torso being inordinately represented (though I think that part is intended behavior). The locations other than the one “targeted” consistently only receive scratch damage. Every time I tested, the grenade always “sniped” a single body part, leaving the rest relatively unscathed. This seems very questionable to me.
2: Lethal damage is not shown in the message log. No entry appears. If the damage is doesn’t kill you, it appears correctly.
It’s worth noting that when wearing a full suit of heavy power armour, no damage was sustained from the grenade under any circumstances. I suspect this might be due to the armour being strong enough that even with the entirety of the grenade’s potential damage output being focused in one spot, it still isn’t enough to penetrate.