Slitherine

My turn starts, and I should be able to target aircraft in range, but I have to move 'towards' a target before it is highlighted.

Once I do this, the targets that were even farther away than the original target was to begin with, only then will they become available.

I've attached the before/after move as a word doc with two images.

Try the button "Toggle Ground/Air Surface" (Tab Key)

It wasn't a toggle issue.

Normally when I select an AA unit, it automatically identifies targets. In this case, only when I 'moved' the AA unit did it detect all targets in range.

you need to toggle to "air" mode to fire, when you stay on "ground" mode you move the unit instead of firing. This was changed in the last patch to enable moving below a target, which wasn't possible before since you would ALWAYS fire.

The OP is correct. I have seen the issue. AA units with plenty of range, eg 88's, already in AA mode, won't pick up valid aerial tgts until moved in some direction.

I just stumbled over this in a current game with a russian 85mm.
Is there any way to pick up targets without moving the AA?

Try toggling between air & ground. The button is the third from the left with the tank\plane on it. The tab key should also work.

Indeed, the reason it works after moving is because now attack is the only available option. Before, moving was the default action and Tab switches it to attack.