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The Level Scaling feature added in the most recent update does not seem to work with the Royal Demand missions from Wrath of The Druids. The issue is not tied to a particular enemy base, as I've been consistently seeing this issue pop up while doing Royal Demands in different locations throughout Ireland.
Screenshot of me doing a royal demand, I locked onto an enemy to show how the enemy is under-leveled and not scaling.
Screenshot of my combat settings showing that my scaling is set to Nightmarish. If the scaling were working properly, then the enemy in the previous screenshot would have have a red skull rather than a green dot next to their health bar.