Wow - that is so broken. Let's try to figure this out - If a player hits another player - do not register dmg, how hard can that be? One would almost think that this game is built in a new engine that doesn't have PVE functionality.
And while we're on it - perhaps fix that animals runs thru walls and kills people inside houses - while sleeping. And for everyone that comments "it's an early access" - yea, that's all fine if they wouldn't have charged for the public testing. With commercial interests - there is a (even if it's low) quality bar. If you give it away for free I would have no complaints.