I do agree completely with Amallric, the devs must have invested a substantial amount of time to screw something up that worked just fine before. By removing the promotion penalty they have simply rendered an entire game component obsolete. Well, I could live with that, you turn auto promotion off but there is indeed little that keeps you from promoting Manstein and such to highest ranks the first day. This was way better in earlier versions. Now in 1.07, for all its merits, the AI promotion sucks so much, since the AI keeps promoting ahistorical nobodies to highest ranks that I ask myself, how is that going to help the AI led nations if the home fleet is commanded by Great Admiral Mitchell (skill 2, ideal rank 2) while Admiral Cunningham is sitting at home taking a nap. To the devs: please change this back to where it was before, because it just does not make any sense! The AI promotion needs to follow the leader files, otherwise the AI will even get weaker than before!!!
P.S. You can improve this mess a little bit if you set the promotion ratios in the AI files for your scenario all to ZERO. THe AI will still occasionally promote nonsense but much less.