It seems to me like there is some sort of collision between troops.
Like they held the line, not transform into a blob.
Sure, there is *some* collision, otherwise they would just float past each other like spooky ghosts. But the collision is very loose, and if you just watch the turbans/helmets in your screenshot you can see that 2-3 people are occupying what should be space for one (hence heads clipping through shoulders). The gameplay implications of this are visible in your screenshot : the right flank is completely overrun because formation has squeezed itself into 1.5 lines (I hesitate to even say there are two) and so the desert friends have looped around them like a lasso of meat - this inevitably turns into severe blobbing (now, of course you eventually want the cohesion of the formation to disintegrate and become a chaotic melee, but this should take time, not happen within seconds of the engagement because the AI doesn't understand personal space). Then there are the enemies that at are inexplicably hanging out 5 meters behind the second line, too sparse to represent substantial reserves, too far away to be an effective backline.
Load up Viking Conquest, Any vs Any 200 men fight in Welsh village and witness the stark difference.
You can see that even once engaged, both sides are maintaining distance and using the reach of their weapons to their advantage (instead of hugging face), have their weapons raised so that they are able to attack anyone who steps in range (as opposed to waiting to be attacked by one target and then hyper-focusing on them at the expense of staying in formation) and are protecting themselves from being flanked (because even if the enemy line was longer than theirs they would still need to contend with 4 rows of men). And while you will eventually see some clipping, you can clearly see that the minimum distance between characters is much more strict than in Bannerlord (try to hug one of your men in VC and you can see that the closest you can get isn't even touching him, whereas in Bannerlord you will squish past each other like two well-lubed dicks.)
Tell me, which screenshot looks like 2 formations clashing, and which looks like an ant line?
Now, the distance between characters in VC's "shieldwall" is much more than it would be in real life, and it does have the detrimental effect of making them weaker to missiles than it should be as opposed to the same formation in Bannerlord where the characters actually overlap their shields, but the additional space is clearly a design choice to make the game's combat system in mind - you need space to either side of you to initiate your attack animations, and you need distance from the enemy to actually complete them - and thusly VC does an excellent job of representing useful formations that still allow for the individual skill of combatants to show (and aren't yokes like in Bannerlord where characters straight up fight worse when in formation). And to be fair, there is an obvious quality of life benefit of looser collision detection, that being the fact that you can easily wade through your own formations and probably won't get pushed off ladders during sieges anymore, but I question those benefits if the result is that the nuance and cohesion of field infantry engagement is so crippled.
The point isn't to say that VC is better than Bannerlord. The point is that somehow this shit got figured out in VC and Bannerlord seemingly not only didn't learn from it but did infantry combat less sensibly than even the original Mount & Blade.
Many of you guys seem to think that this is eventually going to be fixed. All I can say is that I hope you are proven right.