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Describe the Bug:
1- Eiganjo Castle doesn't trigger prevent damage effects window or more accurately card lights up to show it has triggered but no prevent damage effects window(unless you have another card that prevents damage) and so you can't use it to prevent damage to legendary creature.
2- AI at least could use Eiganjo Castle to prevent damage only if it was tapped (AI knew that and so before use it to prevent damage always tapped it for mana) and AI could use it many times if it had the mana to spend.

Which card did behave improperly ?
Eiganjo Castle

Which update are you using?(date,name)Which type(Duel,Gauntlet,Sealed Deck)
Manalink 2015/3/25: Fate Reforged,duel

What exactly should be the correct behavior/interaction ?
1- when a legendary creature gets damaged and there is Eiganjo Castle on the battlefield it opens prevent damage effects and you can activate it to prevent damage.
2- AI can't activate it when tapped or multiple times as it has a in it's activation cost to prevent damage.

Are any other cards possibly affected by this bug ?
-

Didn't test the AI bit, but the other isn't quite right.

First, bad test because Eight-and-a-Half-Tails isn't Legendary (bug already reported).

Second, I think the lack of trigger is the old lands can't trigger as instants unless there is another instant problem. If you have a Healing Salve in your hand Eiganjo Castle works as intended.

Well,AI was able to prevent damage from Eight-and-a-Half-Tails many times and I did so couple of times so while I couldn't do so with non-legendary creatures,so for Eiganjo Castle Eight-and-a-Half-Tails is a legend.

Confirmed that while it taps to prevent damage it doesn't require it so it can be used >1. But the trigger issue is the standard land trigger problem.

Fixed in 1f8500a