Instead of a banner I got a shield on the castle

[Lurce]

I recruited an army and the shield on the castle didn't transform into a banner it just jumped to the top.
Pic: http://puu.sh/kV7su/a2064a55d7.png

[Sarph]

Happened to me too, saved and restarted the game, fixed itself and a knight was recruited immediately by a free peasant.

[Blood and Bloody Ashes]

The same thing just happened to me. I noticed it when I hired two more knights (right after the others died) and only one banner showed up but three knights appeared! Unfortunately, they did not have their archer entourage. Sent them off to die and then I got the shield too high for a peasant to grab. I captured both things here: http://puu.sh/kVhmC/c9b5f459c9.png

[Reversal]

I had a similiar issue to what Antares described. Also, I could not save my game either until I restarted.