awalterj: In Daggerfall, the city guards tried to arrest me for attempting to sleep in my own house. It's no secret that vagrancy is a big no-no in Daggerfall, but in your own damn house...definitely one of the more entertaining bugs I encountered.
My understanding is that one of the official patches changed it so that trying to sleep (actually, not even trying; acting like you're going to sleep would trigger this, even before selecting the amount of time) in your own house would no longer alert the guards, but sleeping on your terrace is still grounds for arrest.
An even funnier bug I encountered, in the final version, happened on my ship; I tried to smash the door to the hull from the inside with my weapon, and guards suddenly started to attack. Being hit gives the surrender prompt, but choosing to surrender just puts you at like 1 HP and doesn't take me to a court (there are none in the Coast of High Rock region). On the other hand, it did lower my reputation in the Coast of High Rock region, and I am wondering whether there are any negative repercussions of having poor reputation in this particular region.