Reposting this, as I was able to reproduce this consistently, over and over. Added additional details since the prior concluded result ended in a "Resolved." Added additional information, to better help with testing on another's side.

Below is the final concluded results.

100% Finally Confirmed issue with Minecraft, Spigot AND CraftBukkit Version 1.11.2.(LATEST VERSION of Each. I was able to produce the error in the latest CraftBukkit Build as well.)

Here are the fruits of my testing. Anything additional I will gladly give you insight on.

Latest Build being from Citizens 2.

citizens-2.0.21-SNAPSHOT.jar

There is an issue that causes the Wolves AI to go haywire. When you use this Plugin, the Wolves sit there and do nothing. They only follow you around.

Get attacked? They stand there.

Attack something? They stand there.

Wolves will not chase Skeletons. At all.

Skeletons will not run away from Wolves. Even though the wolves are sitting right there.

Freshly spawned Wolves tamed by bones work. After a short period of time, these wolves' AIs break. Unknown cause.

Only upon removing the plugin, do the Wolves AI revert back to normal. Upon adding the plugin, the wolves revert to being broken.

I also tested this with having JUST Citizens as well. No other Plugins on the server to conflict with it.

Same issue. The Dogs are broken. Won't do nothing at all. They only follow you around. Nothing more. Nothing less. Once you start the server with 0 plugins, the wolves AI acts as normal.

This is the exact specs I am using for both my computer, my operating system and the Java/Spigot Build as of 12/29/2016.

Java 8.
Windows 10.

A Developer was unable to reproduce this error. Why was I able to consistently by chance? Unless further testing was needed on Dev side to conclude the issue.

I had re-spawned player's wolves on several occasions to try to fix their wolves for them. Killed all their old wolves, gave them bones to retame them. Done this multiple times. Within a few hours their newly spawned wolves had broken.

If you would like to access our server, I can show you this issue directly. I JUST spawned one with an Egg using the VERY latest Spigot (as well as CraftBukkit) Builds. Wolf AI works for a short period of time. After a short period, the AI no longer acts accordingly.

This is with ONLY the Citizens Plugin installed. NOTHING else.

Additional:

This does not work on the latest CraftBukkit, either. They worked for a short time after being spawned in and tamed by bones. Once I had died, they glitched out. Unable to reproduce this. I added this in, and edited the above issue accordingly.

After I had died, the issue came up where the wolves would no longer work.

All the "Broken" Wolves sit in place when monsters are attacking me, or I attack them.
The moment I spawn a NEW Wolf, and tame with Bones, that Wolf works. That Wolf eventually breaks.