I don't think naval units are engaging in 1.02c, Or, if it is working correctly, the rate of engagements is very, very low. I just played a test turn of Trafalgar, and where there should have been three engagements, there were none, and I received no '...retreated before' or '..failed to engage' messages in the log. The combat section was empty.
I haven't seen one naval engagement yet in 1.02c, btw.
I have the trafalgar save, uncompressed though. Should see the same behavior just running through the scenario.