1. Create a new Save (empty or any other)
2. Add Industrial Overhaul to the Mods
3. Load the World
4. Place a Cockpit
5. Enter the Cockpit
6. Open the Control Panel and you will see that the Cockpit has no Option to "Enable target locking"

Therefore the new Target circle and target lead aka the new combat systems can not be used as described officially here
https://www.spaceengineersgame.com/new-players/warfare2-combat-guide/

Here is a test world
https://psteamcommunity.yuanyoumao.com/sharedfiles/filedetails/?id=2747001197

I made sure to use the latest version of IO, by unsubscribing the mod, deleting the mod folder and resubscribing. And on top in also made sure to use the listed plugin.

Here is a picture prooving it
https://i.ibb.co/zPbV4V3/20220208120354-1.jpg

I think this bug is fatal, because it disables the entire new combat system.