Hello @Darthscully , welcome to the forums.
As it has been mentioned, this is the expected behavior for bandages in this current version of the game, although there will be some major changes to healing in an upcoming patch, more information below:
Temperature, balancing and PVP changes coming with the release of Isle of Siptah
We want to move our combat gameplay into a more visceral direction, where action and counter actions are visible both to you and your friends. For that effect, we are introducing a series of changes that will move our combat system towards that direction: Aloe Potions (potions) and Wraps (bandages) both now have animation requirements for their gameplay effects to trigger; potions now have a short animation before their effect is triggered and bandages have their effect applied continuously.
This is a pretty big change for Conan Exiles and we are eagerly awaiting your feedback on the system.