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I confirm the bug. AI chooses to animate a land at least those using manland_shared() like Treetop Village then pays only part of the payment if it is more than 1 mana (or pay nothing if activation cost = 1) and then I guess AI chooses to not pay the rest of the payment, cancels ( it doesn't get animated ) and this somehow fizzles Propaganda effect and lets AI attack with other creatures without paying to attack.
Similar bug here:
viewtopic.php?f=86&t=29687&hilit=propaganda

Ran into this again and I thought I'd add a savegame to the thread. AJ linked the 2020 bug report that included Arcbound Ravager sacrifices in the mix. This save is more straightforward.

Opponent attempts to activate Faerie Conclave and fails/changes mind. Then 3 creatures attack without paying costs for the Ghostly Prison and Sphere of Safety in play.

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