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Apparently this is something that happens in Vanilla XCOM2 as well, but I haven't played Shen's Gift until now. The cover provided by Bulwark applies to aliens as well. Just a bit of tactical fun, right? Well, it took me three instances of thinking I was the king of cover bugs to realize that a point blank shot when you have Bulwark is actually a full cover shot, of course!

You can usually get by with the small reduction in to-hit, and watching where you stand, but it feels really weird knowing that you go from 100% to hit to 55%~ in a single step.

http://imgur.com/g4Vmb2P
http://imgur.com/cbhuN3O
http://imgur.com/8LwBWRh

That bug actually dates all the way back to Alloy SHIVs in EU. I don't think there's any fix, because it's not technically wrong. The unit is in cover, so it has cover.

I guess you could say that SPARKs have a hard time bringing those big guns to bear on targets that close.

It does kinda make sense-- and, I mean, why are you moving up that close if you're not going to just punch them?

If it actually applied a defense bonus vs Strike though, that would be... bad.