Confirm this is still the case as of this date. Think it's all damage, not just physical; "enemy skill Laser" is the easiest example to check this with as it supposed to do exact 1/2 of current hp in damage. Currently it does 1/2 of 1/2 (i.e. 1/4 of current hp in damage) - and I'm pretty sure it's counted as "magic" damage.
I do have an installed mo.exe in a different folder actually, but don't know if I want to fix it, as the game difficulty seems a lot better with this. Though to be honest, I like big numbers and character growth, so would far rather that instead all enemies simply had 2x the health. I know there are mods that 'buff' enemies, but they seem to do a whole lot of other things too (damage dealt, abilities, cooldowns etc.)
EDIT: So far tried using ff7.exe (renamed to ff7_mo) from my other PRP folder - which is patched to 1.02 and has the Reunion/MO standalone installed. Game crashed on first text box conversation.
I've tried installing the MO standalone over the 7th Heaven mod - game would not start (regardless of whether I have the actual mod enabled or not).
I also tried launching with ff7_bc.exe without having beaucause translation enabled - this seems to work, however the 1/2 damage still persists (tested with Enemy Skill "Laser" on a sand worm)
Would love if someone posts a working ff7_mo.exe here, or links to a mod where you can change the multipliers of enemy hp and own damage, if such a mod exists.
Cheers.
EDIT 2:
And just to mess with me, I just tested it with default ff7.exe with MO disabled, laser still does 375 instead of 750 damage on an enemy with 1500hp. Not sure what's broken any more and probably getting myself paranoid - just remember doing more damage in general with everything on the last several playthroughs? Can someone confirm what my physical attacks should be doing around mid 20s?
EDIT 3:
Weirdly enough, this seems to have fixed itself after leaving corel prison. I'm using ff7_mo.exe at the moment and % spells have been doing their correct % since cosmo canyon.